Russian President Vladimir Putin signed a decree to implement special measures in the financial, fuel, and energy sectors in response to actions by unfriendly countries. The document prohibits, through December 31, 2022, a series of transactions involving foreign participants from hostile nations in Russian companies.
The restrictions apply to deals involving securities that form the authorized capital of these organizations, as well as to rights, obligations, shares, and agreements connected with investment projects implemented in Russia. The ban also covers transactions with shares of strategic companies and banks in Russia, along with shares, rights, and obligations tied to the Sakhalin-1 oil and gas project.
Alexander Frolov, deputy director of the National Energy Institute, noted that foreign firms that previously planned to exit the Russian market and sell stakes in joint ventures in the country will face new limits at least through 2023. This observation was reported by Gazeta.ru.
Frolov commented that Putin’s decree blocks the broad exit strategy of foreign energy giants from Russia and seeks to dampen negative investment sentiment that could worsen as more companies leave. The line drawn by the decree means an exit is no longer a simple option through year-end, according to Frolov.
Several large foreign energy companies have engaged in investment activity in Russia. Among them are BP and Shell from the United Kingdom, Baker Hughes, Halliburton, Exxon Mobil from the United States, Total from France, Equinor from Norway, and others, as noted in industry discussions.
BP
According to Frolov, BP stands to gain more from Putin’s decree than other firms. BP controls a substantial stake in Rosneft, holding 19.75 percent of its authorized capital. Despite objections about a withdrawal from Russia, the British company has not divested valuable assets. The decree now provides a framework that helps BP rationalize its continued presence in the country.
Frolov added that BP’s cautious approach to exiting Russia stems from its significant footprint there. The British holding company has stakes in three projects: Taas-Yuryakh oil and gas production (20 percent), Yermak neftegaz (49 percent), and Kharampurneftegaz (49 percent).
Total
Even after funding for the Arctic LNG-2 project ends, Total maintains its status in the Russian energy market. The French group still holds shares in NOVATEK projects, which is Russia’s leading private LNG producer.
According to Frolov, total and its Norwegian partner Equinor held meaningful stakes in the Kharyaginskoye field until the end of July, with 30 percent and 20 percent respectively. Assets linked to those shares are expected to be transferred to Zarubezhneft as part of ongoing shifts. Total remains active in profitable ventures such as Yamal LNG (20 percent), Arctic LNG-2 (10 percent), and Terneftegaz (49 percent), with overall performance affected by depreciation in joint ventures with NOVATEK, though it remains a major minority shareholder in Russia’s LNG sector.
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Norwegian Equinor has operated in Russia for more than three decades. Beyond acquiring stakes in the Kharyaginskoye field, the company participated in forming Sevkomneftegaz to develop Severo-Komsomolskoye in Yamal. Even after a 20 percent decline in a project, Equinor maintains a broad footprint in Russia.
Since late 2020, Equinor has been a partner in Angaraneft, which holds the license for the Severo-Danilovskoye field in the Irkutsk region. The company also owns a 49 percent stake in Krasgeonats, later renamed AngaraOil, which has exploration and production licenses for fields in Eastern Siberia.
Frolov observed that Equinor transferred its stake in four joint ventures to Rosneft. Unlike Total and BP, the Norwegians were more explicit about withdrawing, yet their overall exposure in Russia remains significant while the decree affects several projects. The French, by contrast, have signaled a desire to preserve some Russian presence, driven by strategic considerations and market positions, according to the analyst.
ExxonMobil and Shell
In early March, Exxon Mobil indicated plans to withdraw from the Sakhalin-1 project, a major foreign direct investment venture. Alongside the American company, the Japanese consortium Sodeco with 30 percent and the Indian state oil company ONGC Videsh Ltd. played roles in the project. Frolov emphasized that Sakhalin-1 is a focal point of Putin’s decree.
According to Frolov, Exxon Neftegas Limited had announced an investment of five billion dollars in Sakhalin-1 over five years. After sanctions, production reportedly slowed as the U.S. company explored every option. The decree now makes it considerably harder for Exxon to exit before year-end.
Shell is highlighted as another intriguing case in the wake of the decree. Shell has pursued an aggressive asset divestment strategy in Russia, notably selling its network of gas stations and withdrawing from the Sakhalin-2 project in partnership with Gazprom. Negotiations with China over the sale of nearly a 30 percent stake carried a potential loss estimated at up to five billion dollars. With Putin’s decree, Shell hopes to mitigate losses as competitors gain latitude, according to Frolov. Shell’s recent performance reflects substantial downturns since late February, but the company remains a significant presence in the Russian energy landscape through various ventures and strategic assets, as discussed by industry observers.