Speaking to Natural Resources Minister Yury Trutnev, Putin said: "I expect the ministry and the government as a whole to make [tough] decisions, including against those who do not work in good faith or fail to comply with the terms of their licensing agreements."
Putin's statement came following the launch of a series of probes into operations of Western oil companies alleged to be in breach of their licensing agreements with Russia's authorities and to abuse environmental regulations.
Royal Dutch Shell PLC is one of the companies to have found itself under close scrutiny. Regulators have said that a liquefied gas project it operates on the Far Eastern island of Sakhalin, off Russia's Pacific coast, falls short of environmental standards. They have threatened to revoke Shell's license for the $20 billion Sakhalin II project unless the energy giant submits satisfactory proposals to redress the damage.
