Russian President Vladimir Putin has signed decrees granting the government of the Russian Federation with powers to confiscate and forcefully sell billions of dollars in assets belonging to European energy companies. owners of billions of dollars of assets belonging to European energy companies. companies. This was reported by Politico, according to UNN.
Details
As the newspaper writes, in a decree published on Wednesday, the Kremlin ordered to create new Russian companies that will receive shares in the South Russian oil and gas field, which is currently owned by Austrian OMV and German Wintershall.
It is noted that these two largest European energy companies, representing countries that Moscow considers "unfriendly," together own a 60 percent stake in the drilling site in the far north of Russia.
Although the companies will theoretically be compensated for their investments, the amount they receive from the sale will be determined by Russia. This will be the largest asset seizure in the country's recent history,
For reference
It is noted that many Western energy companies have announced their complete withdrawal from Russia since the beginning of the war in February 2022, including American Exxon Mobil and Norwegian Equinor. However, other companies such as such as Shell, BP, TotalEnergies, and Wintershall, have faced practical difficulties in winding down their business in the country and returning their funds.
Experts warn that the lack of Western investment, coupled with an embargo on key oil and gas exploration and drilling equipment and technologies, means that Russia's flagship fossil fuel sector is likely to face a long-term decline in productivity, despite loopholes in sanctions and high oil and gas prices,