Japan Says Its Exit from Sakhalin Energy Projects Would Benefit Russia and Weaken Sanctions

Yuka Obayashi and Elaine Lies
Friday, April 22, 2022

Should Japan ever exit the Sakhalin energy projects in Russia and their stakes were acquired by Russia or a third country, this would weaken the effectiveness of Western sanctions and benefit Russia, Japan's industry minister said on Friday.

"We are concerned that if Japan withdraws from the project and the concessions are acquired by Russia or a third country, it could further boost resource prices and benefit Russia, which will not result in effective sanctions," Japanese Economy, Industry and Trade Minister Koichi Hagiuda told a news conference.

Hagiuda's comments follow a report in the Telegraph on Thursday that Shell is in talks with some Chinese companies to sell its stake in the Sakhalin-2 liquefied natural gas project in Russia amid sanctions imposed on Moscow over its invasion of Ukraine.  

"If the concessions are transferred to a third country, the withdrawal would not be a major blow to Russia, and our concerns will become a reality," he said.

The Ukraine crisis has put Japan's involvement in the Sakhalin-1 and Sakhalin-2 oil and gas projects in focus since Western oil majors have said they would pull out of Russia after its invasion of Ukraine. Hagiuda said last week that Japan intends to continue to hold its concessions.

(Reuters - Reporting by Yuka Obayashi and Elaine Lies; Editing by Christian Schmollinger)

Categories: Energy Industry News Activity Production Asia

Related Stories

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

CNOOC Brings New Offshore Gas Field On Stream

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Current News

How Hot Is Your Cable? Understanding Subsea Cable Thermal Performance

Sponsored: UAE Breaks Ground on GW-Scale Renewable Energy Hybrid

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com