Russia OKs Trader Mitsui's Investment in New Sakhalin-2 Operator

Economy

Tokyo, Aug. 31 (Jiji Press)--The Russian government has approved a plan for Japanese trading house Mitsui & Co. <8031> to hold a 12.5 pct equity stake in a new Russian operator of the Sakhalin-2 oil and natural gas development project in the Russian Far East, according to a government decree announced Tuesday.

The project is crucial for Japan's liquefied natural gas procurement. Mitsui's investment will likely lead to Japan maintaining its interests in the project.

The decree, published on a Russian government website, did not mention anything about Russia's decision over investment by another Japanese trader Mitsubishi Corp. <8058>, also involved in the Sakhalin-2 project.

According to the decree, a Dubai-based subsidiary of Mitsui will take a 12.5 pct stake in the new Sakhalin-2 operator.

The Russian government has instructed the new company to create documents necessary for the transfer of shares to the Mitsui side.

[Copyright The Jiji Press, Ltd.]

Jiji Press