China seeks to settle after Shell exits Russia – media – RT Business News

China’s state-run energy majors are in talks to acquire the British energy giant’s stake in Sakhalin-2

China’s biggest state-owned energy companies are reportedly negotiating whether to buy a stake in a major Russian gas export project from Shell after the British oil and gas company left Russia over the conflict in Ukraine. .

Cnooc, CNPC and Sinopec Group are in joint talks with Shell over the company’s 27.5% stake in liquefied natural gas venture Sakhalin-2, according to people with knowledge of the matter, as quoted by Bloomberg.

The talks, which are still in their infancy, would include selling the stake to one or two of the Chinese companies, or to a consortium of the three majors. Shell is also open to negotiations with other potential buyers outside of China, the sources, who asked to remain anonymous, told media.

In March, Shell announced its intention to withdraw from its joint ventures with Russian gas giant Gazprom and related entities. The move follows similar steps announced by French firm Total, UK firm BP and Norwegian firm Equinor ASA. The company later said it would have to write off up to $5 billion in assets due to the exit.

The Chinese auto industry is also eyeing opportunities in Russia. One of China’s automakers may buy Renault’s stake in Russian automaker Avtovaz, according to a government agency source quoted by TASS. Renault owns 68% of Lada Auto Holding, a joint venture with Rostec, which owns 100% of Avtovaz.

A mass exodus of major international brands from Russia has taken place amid Western sanctions linked to Moscow’s military operation in Ukraine, which was launched on February 24.

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