Japan to Maintain Its Stake in Sakhalin-1 Oil Project

Japan to Maintain Its Stake in Sakhalin-1 Oil Project

After Russia temporarily banned Western investors from selling shares in key energy projects, Japan’s minister for economy, trade and industry Koichi Hagiuda stated that the country intends to keep a stake in the Sakhalin-1 oil and gas project, Reuters reported.

At a news conference, Hagiuda elaborated that the project contributed to Japan’s diversification of its energy supply.

“Sakhalin-1 is a valuable non-Middle East source for Japan, which depends on the Middle East for 90% of its crude oil imports,” he said, adding “There is no change in maintaining the interests of Japanese companies in it.”

As part of a sanctions standoff with the West, Russia has prevented investors from so-called unfriendly countries from selling shares in banks and key energy projects, including Sakhalin-1.

In his remarks, Hagiuda said Japan intended to maintain stakes in Sakhalin-2 with its trading houses.

“We’ll need to consider specific measures after confirming details of Russia’s decision,” he said.

“The public and private sectors will work together to ensure a stable supply of LNG to Japan,” Hagiuda said. They shared a basic policy on maintaining the stakes, and he hoped the trading houses would start the procedure for converting to the new entity if they could meet Russia’s conditions.


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