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Japan asks Mitsui, Mitsubishi to ‘think positively’ in joining Sakhalin-2 entity

Koichi Hagiuda, Japan’s Minister of Financial state, Trade, and Sector, responds to a journalist’s query throughout the U.S.-Japan Financial Coverage Consultative Committee (EPCC) assembly at the Point out Department in Washington, U.S., July 29, 2022. REUTERS/Tom Brenner

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TOKYO, Aug 5 (Reuters) – Japan’s authorities has questioned Mitsui & Co (8031.T) and Mitsubishi Corp (8058.T) to “consider positively” in joining the new Russian entity that will swap the Sakhalin-2 liquefied organic gas (LNG) challenge, marketplace minister Koichi Hagiuda explained on Friday.

The minister met Mitsui President Kenichi Hori on Friday and produced the request, and the ministry has also asked the same of Mitsubishi, Hagiuda said, introducing that he programs to meet with a Mitsubishi executive in the around long run.

“The community and personal sectors will work with each other to protect the interests of Japanese companies and guarantee a secure provide of LNG,” Hagiuda explained to a news conference, reiterating that Sakhalin-2 is a critical supply of stable strength provide to Japan.

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Japan imports about 10% of its LNG from Russia, largely from Sakhalin-2.

Particulars of the problems for Japanese trading residences to utilize to join the new Russian entity were being not apparent, but the ministry was not mindful of any ask for by Russia for more expense or expenditures to join the new corporation, Hagiuda reported.

Mitsui and Mitsubishi, which jointly keep 22.5% in Sakhalin-2, explained separately on Friday they would cooperate with the Japanese authorities and their business partners “to come to a decision on no matter if or not they would sign up for the new entity.”

A Russian govt decree signed on Aug. 2 and published on Wednesday gave foreign traders at Sakhalin-2 – Shell (SHEL.L) and the two Japanese investing residences – a month to claim their stakes in the entity that will switch the project.

State fuel business Gazprom (GAZP.MM) will get just above 50% of the entity replacing Sakhalin Electrical power, the existing operator. The new enterprise will also keep the remaining 49.99% right until current Sakhalin-2 shareholders implement for a stake, with early September set as a deadline. go through additional

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Reporting by Yuka Obayashi Enhancing by Muralikumar Anantharaman and Tom Hogue

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