02:58 PM EDT, 03/25/2024 (MT Newswires) -- Shell's (SHEL) 27.5% previously held stake in Sakhalin liquefied natural gas project will be sold to a unit of Russia's state-owned Gazprom for 94.8 billion rubles ($1.02 billion), multiple news outlets reported Monday.

Shell withdrew from energy projects in Russia, including the Sakhalin-2 LNG facility, following the invasion of Ukraine in 2022. It recognized a $1.6 billion impairment charge for the LNG project.

The Russian government reportedly published an order for the sale, reversing its previous decision to transfer the stake to privately-held LNG producer Novatek. The deal will raise Gazprom's stake in Sakhalin 2 to about 78%.

Neither Gazprom nor Novatek immediately replied to requests for comment by MT Newswires.

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