Shell setback in Russia project

POSTED: 1320 GMT (2120 HKT), September 18, 2006

MOSCOW, Russia (Reuters) -- Russia's resources ministry said on Monday it had canceled its own ecological approvals for Royal Dutch Shell's Sakhalin-2 project, which could effectively halt the $20 billion project.

The move follows weeks of wrangling between the ministry and the company over ecological compliance and the ministry promised last week to sue Shell in courts to withdraw all permissions.

It was not clear whether the first hearing will still take place on September 21 or the ministry's decision required no court approval.