Russia takes over the Sakhalin-2 oil and gas project

Russia takes over the Sakhalin 2 oil and gas project

Japan will “examine carefully” the Moscow decree announcing a takeover of the Sakhalin-2 oil and gas project. Two Japanese companies are involved alongside the Russian Gazprom and the Dutch company Shell. In the economic war between Moscow and the West and their allies, Vladimir Putin no longer hesitates to attack foreign assets.

The shock promises to be immense for Japan, whose liquefied natural gas imports come at 8% from Russia, a country where the business climate has hardened since the start of the offensive against Ukraine. Several foreign groups have also withdrawn.

The Japanese, despite the participation of their State in the sanctions taken against Moscow, have maintained their presence in the Sakhalin-2 project but they now risk having to give it up under duress.

The decree signed by Vladimir Putin on Thursday creates a new Russian company responsible for taking over the rights and obligations of Sakhalin Energy Investment Co, a consortium in which Gazprom dominates. A little less than 50% of the shares are held by two Japanese trading companies Mitsui & Co and Mitsubishi Corp and the Anglo-Dutch Shell.

These foreign partners have one month to say if they want to take a stake in the new Russian entity, if so they will have to wait for the green light from the authorities. In other words, the Kremlin is preparing the ground for a formal expropriation. Shell, like the Japanese side, both said, taken aback, that they would study the implications of the presidential decree.

To read: G7: “The cap on the price of Russian oil, a gas plant for political purposes”

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