Japan Biz Leader Shows Concern over Sakhalin-2 Project

Economy

Tokyo, March 1 (Jiji Press)--Kengo Sakurada, chairman of the Japan Association of Corporate Executives, or Keizai Doyukai, expressed concern Tuesday over Japanese firms' continued involvement in the Sakhalin-2 liquefied natural gas project with Russia.

"It's unthinkable to keep making (Sakhalin-2 LNG) transactions by ignoring the fact that Russia has repeatedly been violating international law," Sakurada told a regular press conference.

"I believe Japanese traders currently involved in key businesses and projects of a country that repeats genocide-like acts will make appropriate decisions," he went on to say. "We must consider more than ever trade risks in a country that does not share values with us."

The remarks by the head of a major business lobby in Japan followed British oil giant Shell PLC's announcement Monday that it will pull plug on the joint project off the Russian Far East island of Sakhalin in response to Moscow's invasion of Ukraine.

In the symbolic LNG cooperation project, leading Japanese traders Mitsui & Co. <8031> and Mitsubishi Corp. <8058> hold stakes of roughly 12.5 pct and 10 pct, respectively, while Russia's state-run Gazprom owns some 50 pct and Shell about 27.5 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press