Russia approves Japan’s participation in Sakhalin-2 oil and gas project. Reuters reported this information in a report on Thursday.
Japan’s Mitsubishi Corp also said on Thursday that Moscow has approved its 10 percent stake in the Sakhalin-2 project. The announcement comes a day after Mitsubishi approved a 12.5 percent stake in Japan’s Mitsubishi. The Japanese government is supporting both organizations in this project.
After Russia’s approval, Japanese government spokesman Hirokazu Matsuno said at a regular briefing on Thursday that the decision is very significant for our country’s stable energy supply.
Meanwhile, Moscow is handing over Sakhalin-2 work to a new Russian firm. As a result, foreign stakeholders will henceforth have to apply for approval to maintain their interests.
Two Japanese trading houses will maintain stakes in Russian energy projects despite Japan imposing sanctions on Moscow over its war in Ukraine. The Asian country is taking this decision to secure electricity supply.
Nine percent of Japan’s total liquefied natural gas (LNG) demand comes from Russia. Almost all gas coming from Russia to Japan is supplied from Sakhalin-2. Sakhalin is a Russian island rich in natural resources such as oil and gas. The geographical distance of Sakhalin from Japan is not too far.