All news

Tokyo wants clarification on timing for implementation of Moscow's decision on Sakhalin-2

We are currently requesting through diplomatic a clarification on the timing for the implementation of the presidential decree, investment terms and other details, Japanese Minister of Economy, Trade and Industry Koichi Hagiuda said

TOKYO, July 5. /TASS/. Japan is using diplomatic channels to find out the exact timing and other corresponding details pertaining to Russia’s decision to set up a new operator for the Sakhalin-2 oil and gas project in which two Japanese companies hold stakes, Japanese Minister of Economy, Trade and Industry Koichi Hagiuda said on Tuesday.

"We are currently requesting through diplomatic a clarification on the timing for the implementation of the presidential decree, investment terms and other details," the minister said. He added that Japan would continue doing its best to ensure stable energy supplies.

On July 1, Russian President Vladimir Putin signed a decree replacing the operator of the Sakhalin-2 oil and gas project being implemented under a production sharing agreement (PSA). Under the decree, all rights and obligations, as well as the property of Sakhalin Energy will be transferred to a new stock company currently bring established in Russia. Within a month, Sakhalin Energy shareholders must notify the Russian government that they agree to accept shares in the new company in proportion to the shares in the former operator.

Gazprom has a controlling stake (50% plus one share) in Sakhalin Energy, Shell holds a 27.5% stake, Mitsui has 12.5%, and Mitsubishi — 10%. The bulk of LNG from the development goes to Japan.

Earlier, Japan’s Prime Minister Fumio Kishida said the decision on Sakhalin-2 would not immediately stop LNG imports. He also said Tokyo would monitor the situation jointly with businesses and discuss further steps. Mitsui and Mitsubishi told TASS earlier that they were seeking to clarify the situation.