Japanese Traders Lower Value of Sakhalin-2 Assets by 217 B. Yen

Economy

Tokyo, Aug. 3 (Jiji Press)--Major Japanese trading houses Mitsui & Co. <8031> and Mitsubishi Corp. <8058> have lowered the value of their assets in the Sakhalin-2 oil and natural gas development project as of the end of June by a total of 217.7 billion yen from three months earlier.

The move comes amid growing uncertainty over the future of the project in the Russian Far East after Moscow decided to have a new company take its control.

Mitsui, which currently holds a 12.5 pct stake in the project, cut the value of its assets by 136.6 billion yen to 90.1 billion yen, while Mitsubishi, which owns 10 pct, slashed the value by 81.1 billion yen to 62.2 billion yen.

The two Japanese traders had reassessed the value of their Sakhalin-2 assets at the end of March. The downward revisions announced on Tuesday were larger than those of March.

In June, Russian President Vladimir Putin signed a decree to allow a new domestic company to seize control of the Sakhalin-2 project.

[Copyright The Jiji Press, Ltd.]

Jiji Press