Brussels, 19/09/2006 (Agence Europe) - Energy Commissioner Andris Piebalgs indicated on Tuesday that he was taking Moscow's decision to cancel Royal Dutch Shell's permit for the Sakhalin oil and gas project in eastern Russia, “very seriously indeed”. The Russian minister for Natural Resources announced on Monday that the environmental permit granted to Shell for the Sakhalin-2 project, where the Anglo-Dutch group has a 55% holding and which is the most important private investment ever made in the energy sector worldwide (estimated to be worth €16 bn), would be cancelled. In a press release Mr Piebalgs warned, “In order to ensure that companies are willing to invest in multi-billion € energy projects, a secure and predictable investment climate is necessary in Russia as in the EU or indeed any country. Without this, investment in new energy projects will be highly problematic, proving uncertainties for the world's future energy supply”. The Commissioner added, “Every country has the legitimate right, and indeed, obligation, to ensure that any oil or gas extraction on its territory is undertaken to the highest possible environmental standards” but explained that if such problems had been identified in the Sahalin-2 project “they should be clearly and unequivocally identified by the Russian authorities and Shell must be given an appropriate time to resolve them according to defined and clear criteria, set out in advance”. He explained that, “the successful EU-Russia Energy Partnership is based on the mutual respect of transparency, predictability and non-discrimination. This applies as much to the ability of EU companies to invest in Russia as to the right of Russian companies to sell gas and oil freely at both upstream and downstream levels in the EU”. The Commissioner is expected to send the Russian Energy Minster, Viktor Kriskenko, a letter on Tuesday “to offer my support for a rapid resolution of this issue”.