Mitsubishi's Investment in New Sakhalin-2 Operator Also Approved


Tokyo, Sept. 1 (Jiji Press)--The Russian government has endorsed Japanese trading house Mitsubishi Corp.'s <8058> plan to acquire a 10 pct equity stake in a new Russian operator of the Sakhalin-2 oil and natural gas development project in the Russian Far East.

A related government decree was posted on a Russian government website on Wednesday.

The announcement came a day after Moscow said it gave another Japanese trader Mitsui & Co. <8031> the green light to take a 12.5 pct stake in the new operator of the Sakhalin-2 project, which is crucial for Japan's liquefied natural gas procurement.

The Russian government's decisions to approve the two Japanese traders' investment plans mean that progress was made toward Japan maintaining its interests in the project.

Some experts say, however, that the details of the deals will be decided based on negotiations between the Japanese firms and the Russian side and that it remains to be seen whether Japan would be able to continue procuring LNG stably.

[Copyright The Jiji Press, Ltd.]

Jiji Press