Vladimir Putin signed a decree on Thursday to replace the operator of the Sakhalin-2 project with a new Russian company to be founded by the government. This questioned the involvement of two Japanese companies in it. Almost 10 percent LNG imports to Japan come from the Sakhalin-2 project.
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The Japanese government says it has no intention of withdrawing from the project it believes is necessary to ensure a stable energy supply to Japan.
Economics, Trade and Industry Minister Hagiuda Koichi told reporters on Friday that Putin’s decree is not a requisition that will forcefully expropriate Japanese companies’ shares in the project. He added that he would closely monitor how Putin’s decision would affect Japanese companies’ shares in the project and gas supplies to Japan.
