THE HAGUE, 23/09/06 - Premier Jan Peter Balkenende has spoken to Russian President Vladimir Poetin about the Sachalin energy project.

The Russian authorities last week withdrew Anglo-Dutch oil company Shell's environmental licences for oil and gas production on the Sachalin peninsula in the east of Russia. Insiders see an attempt by Russia to strengthen its grip on its own oil and gas reserves behind the move.

Shell has a 55 percent stake in Sachalin, the biggest integrated oil and gas production project currently being carried out in the world. The other shareholders are Japanese companies Mitsui (25 percent) and Mitsubishi (20 percent).

According to Balkenende's spokesman, "several topics were discussed, of which Sachalin was the most important." In the telephone discussion, initiated by Balkenende, it was "agreed that the companies involved and the Russian authorities should maintain direct contact and look for a solution."

Earlier this week, Foreign Minister Ben Bot had already expressed his concern on the way in which the Russian authorities were treating Shell. The European Commission and the Japanese government also criticised the behaviour of the Russian authorities.