Shell has pulled out of a Russian liquefied natural gas (LNG) project near the city of St Petersburg, partly due to the sudden addition of a new partner by state gas company Gazprom. Several insiders reported this to Reuters news agency.

It was announced on Wednesday that Shell will stop its involvement in the project. Gazprom is said to have added RusGazDobycha to the project. That company is linked to Arkady Rotenberg, an ally of President Vladimir Putin. Rotenberg is on an American sanction list. Shell would not have been aware of this step by Gazprom in advance.

Shell’s chairman in Russia stated that the decision to withdraw does not affect other projects with Gazprom.

The LNG plant in the port west of St. Petersburg, should have a capacity of 13 million tonnes and be put into operation in 2023.