Japan’s Cabinet urged Mitsui and Mitsubishi to agree to participate in Sakhalin-2

TOKYO, August 5 – RIA Novosti. Koichi Hagiuda, Minister of Economy, Trade and Industry, said at a press conference in Tokyo that the Japanese government had asked Mitsui and Mitsubishi to agree to participate in the Sakhalin-2 oil and gas project.

On Thursday, Hagiuda said Tokyo is committed to continuing Japanese involvement in the Sakhalin-2 oil and gas project. Japanese cabinet Secretary General Hirokazu Matsuno noted that the authorities intend to continue close cooperation with the private sector “to protect the interests of Japanese companies and ensure uninterrupted supply of liquefied natural gas”.

On August 3, the Russian government decided to create a new operator for the Sakhalin-2 project Sakhalin Energy LLC, registered in Yuzhno-Sakhalinsk. The company will replace Sakhalin Energy Investment Company Ltd.

Vladimir Putin signed a decree on Sakhalin-2 on June 30. Shares in the authorized capital of the operator will be acquired by Gazprom Sakhalin Holding and the new company itself. At the same time, foreign partners (Shell, Mitsui and Mitsubishi) can also buy shares in Sakhalin Energy in proportion to their shares. In the former operator, Gazprom owns 50 percent plus one, Shell – 27.5 percent minus one, Mitsui – 12.5 percent, Mitsubishi – ten percent.

In mid-July, it was reported that Tokyo was determined to retain a stake in the project and was negotiating with Japanese companies participating in the project. At the same time, a meeting took place between Japanese Prime Minister Fumio Kishida and Minister of Economy and Industry Koichi Hagiuda, during which the intention to retain a stake in the project was confirmed. At the same time, it was emphasized that the protection of investment depends on the decision of the Russian side, so we will see whether Japan’s intentions to preserve its share in the project will be realized.