Shell's Sakhalin II environmental oil permit cancelled
The project has breached local and international construction standards over the last few years despite calls for standards to improve. The decision to cancel the permit comes at a crucial time as the European Bank for Reconstruction and Development (EBRD) are considering whether to approve a loan to the project, which would give it environmental and social credibility.
The UK's Export Credit Guarantee Department (ECGD) is also considering whether to loan the project money.
James Leaton, WWF oil expert, said: "In light of this intervention by the Russian government the EBRD should review its continued interest in the Sakhalin-2 project. The Bank's policies clearly state projects must comply with local regulations."
"There are ongoing environmental problems that Shell has failed to address. Poor construction not only results in environmental degradation but also in increased financial risks to the project from disruptions due to landslides and oil spills."