Shell boss heads for Russia talks

Shell's boss is expected for talks in Russia later this week

The boss of Anglo-Dutch energy giant Shell is to fly to Moscow for talks with Russia's energy minister over a $22bn (£11bn) oil and gas project.

Jeroen van der Veer is expected to meet Viktor Khristenko later this week to discuss the Sakhalin-2 project.

Shell is widely expected to cede control of the venture to Russia's state-run energy firm Gazprom.

Shell has been under intense pressure from officials keen to regain control of Russian assets, analysts have said.

Japanese partners

The massive Sakhalin-2 is worth billions of dollars to investors

Earlier this month Moscow suspended 12 vital water-use permits for Sakhalin-2, after previously revoking environmental approval for the project.

Shell recently restarted talks with Gazprom over a possible swap or sale of assets in the project, which is situated off Russia's Pacific coast.

Shell currently holds a 55% stake in Sakhalin-2, with Japanese companies Mitsui and Mitsubishi sharing the rest.

Reports have suggested that both Japanese firms are seeking cash from Gazprom in exchange for a slice of their stakes in Sakhalin-2.

Mitsui said talks on the issue were progressing constructively.