Japan has made an exception to sanctions regarding projects on Sakhalin and Yamal
As a result of this decision, construction and engineering works at the Arctic LNG 2 and Sakhalin-1 and Sakhalin-2 projects are no longer subject to sanctions. This decision may be related to expected growth in demand for liquefied natural gas (LNG) in Japan.
The Ministry of Economy of Japan announced authorization of engineering works related to storage, exploration, production, transportation, transshipment and liquefaction of oil and gas for the Sakhalin-1 (controlled by Rosneft and Sakhalin-2 ("Gazprom") projects and also for the Sakhalin-2 ("Gazprom") projects; gas for the Sakhalin-1 (controlled by Rosneft) and Sakhalin-2 (Gazprom) projects, as well as for the Arctic LNG 2 liquefied natural gas plant (NOVATEK). The Japanese consortium SODECO, which includes Japex, ITOCHU, Marubeni and Inpex, has a 30% stake in Sakhalin-1. Mitsui and Mitsubishi own 12.5% and 10% respectively in the Sakhalin-2 project. Companies from Japan also have a 10% stake in the Arctic LNG 2 project on Yamal.
The Ministry of Economy said the decision was made with consideration of the impact on Japanese companies operating in Russia and aims to ensure the stability of projects that are important for Japan's energy security.
The Ministry of Economy said the decision was made with consideration of the impact on Japanese companies operating in Russia and aims to ensure the stability of projects that are important for Japan's energy security.
Japan is the world's largest LNG importer, and last year, 9% of total LNG imports came from Russia. In May 2023, Russian LNG shipments to Japan rose by 9.1%, and the share of Russian LNG in imports reached 13.22%. Japan has repeatedly emphasized the importance of oil and gas projects in Russia, and Japanese companies have decided to stay in these projects, in contrast to US Exxon and Anglo-British Shell, which withdrew from projects in Sakhalin. In March 2023, Japanese Prime Minister Fumio Kishida said that Japan would continue to participate in the projects as demand for LNG is expected to grow.
In addition, as early as 2022, Japan agreed with G7 partners to exclude Sakhalin projects from restrictions on oil prices. The US Treasury Department allowed Japan to continue purchases until September 30 2023.
In addition, as early as 2022, Japan agreed with G7 partners to exclude Sakhalin projects from restrictions on oil prices. The US Treasury Department allowed Japan to continue purchases until September 30 2023.
JUNE 30, 2023.
Source: Georgy Smirnov / RBC