Policy uncertainty is the most common and perhaps most frustrating from of political risk in global business, especially when change in laws and government policies directly undercut sizable investments made by foreign companies. Royal Dutch shell joined with Russia-based Gazprom, a e of the state owned company to develop Sakhalin-2, on word’ largest liquefied natural gas fields. Shell and is partners of took the lead role with 55 percent ownership and a $20 billion investment. However, after year development and billons invested , the Russian government banned foreign companies from owning more than 49 percent of any energy development project. This forced Royal Dutch Shell to relinquish majority ownership to Gazprom in return for $7,45 billion and grenly reduced its access to other Russian gas fields.