Moscow vetoes Sakhalin II budget rise.(Shell in Russia)(Sakhalin Energy)

Sakhalin Energy, the Shell-led group developing the Sakhalin H project in far eastern Russia, has failed to secure the bigger budget it wanted for 2005.

The government's supervisory board for Sakhalin H approved an "interim budget" of $2.5bn at an 18 May meeting, Sakhalin Energy says. But the Sakhalin authorities earlier suggested that the group was seeking a $4bn budget (FSUE, 20 May, p3). Sakhalin Energy does not confirm this figure, but does admit that it requested a larger budget. The authorities are conducting a technical assessment of the remaining amount, a consortium spokesman says.

"This was the toughest supervisory board meeting in my 17 months as …