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Japan’s 7 lead companies lose $2bln from anti-Russian sanctions

  • By Al Mayadeen English
  • Source: Agencies
  • 11 May 2022 09:11
2 Min Read

The losses include a drop in the value of these businesses' Russian assets, such as the Sakhalin-1 and Sakhalin-2 oil and gas projects.

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  • Japan’s 7 lead companies lose $2b from anti-Russian sanctions.
    Japan’s 7 lead companies lose $2b from anti-Russian sanctions.

Losses incurred by seven leading Japanese trade and investment organizations, including Mitsui, Mitsubishi, Itochu, Sumimoto, and Marubeni, as a result of direct and indirect consequences of anti-Russian sanctions, totaled more than $2 billion by March 31 according to the Japanese daily Sankei.

The losses stem from a drop in the value of these firms' Russian assets, such as the Sakhalin-1 and Sakhalin-2 oil and gas projects, as well as losses from leasing passenger planes to Russia.

Meanwhile, Japanese business, backed by the government, is said to have no plans to depart Sakhalin-1 and Sakhalin-2. The importance of importing oil and gas via these projects is based on long-term contracts and at moderate rates, according to the Japanese Minister of Economy, Trade, and Industry Koichi Hagiuda, who spoke at a news conference in Tokyo on May 10.

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He further mentioned that if Japan withdraws from these projects, it will be replaced by a "third country," implying China.

On the other hand, The Russian Foreign Ministry stated last week that Japanese Prime Minister Fumio Kishida and Foreign Minister Yoshimasa Hayashi have been banned from entering Russia due to their participation in the Western-led anti-Russian campaign launched by Tokyo.

In a statement, the Foreign Ministry detailed how "Tokyo is taking practical steps aimed at dismantling good neighborly ties, damaging the Russian economy and the international authority of our country ... Taking into account the above mentioned, as well as personal sanctions imposed by the Japanese government against Russian citizens, including the top leadership of the state, a decision was made to permanently ban the following Japanese citizens from entering Russia."

Kishida and Hayashi top the list of sanctioned officials, attached to the statement. In total, it targets 63 Japanese citizens, including Finance Minister Shunichi Suzuki, Defense Minister Nobuo Kishi, and Justice Minister Yoshihisa Furukawa.

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As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

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