Japan Govt Vows Support for Firms over Sakhalin-2 Project

Economy

Tokyo, July 19 (Jiji Press)--The Japanese government will fully help domestic firms maintain their stake in the Sakhalin-2 oil and natural gas development project in the Russian Far East, industry minister Koichi Hagiuda said Tuesday.

The government "will fully support companies rather than letting them act alone," Hagiuda said at a press conference.

Japanese traders Mitsui & Co. <8031> and Mitsubishi Corp. <8058> own 12.5 pct and 10 pct, respectively, of Sakhalin Energy Investment Co., which operates Sakhalin-2.

Russian President Vladimir Putin has signed a decree to hand over rights to the project to a new company to be established by the Russian side.

The two Japanese firms have been given one month after the new company is established to ask the Russian government to keep their stake in the new entity.

[Copyright The Jiji Press, Ltd.]

Jiji Press