Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Iranian Shura Council recommends the closure of the Hormuz Strait and leaves the decision up to the Iranian National Security Council.
IRGC Commander Major General Mohammad Pakpour: As time passes, the people's solidarity increases, which is a divine blessing
IRGC Commander Major General Mohammad Pakpour: The Iranian Revolution Guard Corps' aerospace operations will not stop
Russian Foreign Ministry: IAEA Director General Rafael Grossi must ensure that an objective report is presented at the special session of the International Atomic Energy Agency (IAEA)
Russian Foreign Ministry: The UN Security Council must respond to the US attacks on Iran
Russian Foreign Ministry: We strongly condemn the US strikes on Iran, calling the decision irresponsible
Iranian Red Crescent: Three personnel martyred, 29 injured in Israeli aggression
IRGC: We have identified and monitored the departure points of the US aircraft that carried out the aggression
IRGC: America has neither the initiative nor the ability to escape the consequences of a powerful response
IRGC: We strongly affirm that Iran's peaceful nuclear technology cannot be destroyed by any attack

Moscow approves Japan stakes in Sakhalin energy project

  • By Al Mayadeen English
  • Source: Agencies
  • 1 Sep 2022 07:55
4 Min Read

Despite Tokyo joining sanctions on Moscow over the war in Ukraine, two Japanese trading houses will maintain stakes in a Russian energy project.

  • x
  • Moscow approves Japan stakes in Sakhalin energy project.
    Moscow approves Japan stakes in Sakhalin energy project.

Despite Tokyo joining sanctions on Moscow over the war in Ukraine, two Japanese trading houses will retain shares in a Russian energy project as the Asian country seeks to ensure its power supply.

Moscow is handing over control of the Sakhalin-2 oil and gas project to a new Russian company, with international stakeholders forced to ask for permission to keep their stake.

Japan, like other nations that have joined the sanctions, is trying to lessen its reliance on Russian energy supplies but is having difficulty finding alternatives.

This year's summer hot caused a power outage in the resource-poor country, which is bracing for a possibly harsh winter.

Mitsubishi Corp stated Thursday that its 10% stake in the Sakhalin-2 project had been approved by Moscow, a day after Mitsui announced that its 12.5% stake had also been approved. The Japanese government backed both firms continuing in the project.

Russia contributes to over 9% of Japan's liquified natural gas (LNG) needs, almost entirely from Sakhalin-2. "This decision is extremely significant for our nation's stable energy supply," government Spokesperson Hirokazu Matsuno said at a regular briefing on Thursday. 

Read next: Japan wants to preserve its participation in Sakhalin-2: Minister

"We will continue to monitor the situation to ensure stable LNG supplies, together with the public and private sectors."

Japan is heavily reliant on imported fossil fuels, in part because several of its nuclear reactors have been shut down since the Fukushima nuclear accident in 2011.

The country previously ruled out withdrawal from the Sakhalin-2 project, despite joining Western-led energy sanctions on Russia. 

Prime Minister Fumio Kishida called last week for a push to revive the country's nuclear power industry in a bid to tackle soaring imported energy costs linked to the war. 

Prior to the Fukushima meltdown, around a third of Japan's power generation was generated from nuclear sources, but in 2020 the figure was less than five percent.  "LNG accounts for over one-third of electricity generation in Japan, while the recent closure of aging thermal power plants has further constrained policymakers' options," wrote James Brady, vice president of Teneo consultancy, in a note.

"The Sakhalin decisions reflect the pragmatic realities of keeping the country's heat and lights on during the most challenging international energy market environment for decades."

What does the new decree constitute?

Upon Russian President Vladimir Putin ratifying the new decree in the economic-trade relations between Russia and foreign nations, any transactions with shares of foreign persons from countries Russia deems unfriendly in its strategic projects and companies in the fuel, energy, and mining sectors, as well as some banks, are banned.

The Sakhalin-1 project was no exception, as the decree bans investors from unfriendly countries from making transactions with shares in it, alongside the Kharyaga oil field until the end of this year.

At a press conference, Economy Minister Hagiuda stated that Japan is aware of the decree and of the fact that it would be impossible to maintain shares and assets in Sakhalin-1 by the end of the year due to the conditions of the new rule. 

“We are currently clarifying the details, so I would like to refrain from commenting. However, for our country, which is 90% dependent on Middle Eastern oil, Sakhalin-1 is an important source of supplies outside the Middle East. There are no changes in our position on maintaining the shares of our companies," Hagiuda further added. 

The Sakhalin-2 project in the works 

Having recently changed its operator with Russia's Gazprom as its majority shareholder, the Sakhalin-2 project is currently exploring two reserves in Russia, northeast of the Sakhalin shelf in the Okhotsk Sea.

The infrastructure circumference entails three offshore platforms, an integrated onshore processing facility, an oil shipping terminal, and a liquefied natural gas (LNG) plant with a capacity of 9.6 million tonnes annually. Sakhalin-2 accounts for about 9% of Japan's LNG imports.

  • Sakhalin
  • Japan
  • Moscow
  • Russia
  • Sakhalin-2

Most Read

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

  • MENA
  • 17 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025
Iran's heavy barrages impact multiple Israeli targets overnight

Iran's heavy barrages impact multiple Israeli targets overnight

  • Palestine
  • 18 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Iran UN Ambassador Amir Saeid Iravani addresses a United Nations Security Council meeting, Friday, June 20, 2025. (AP)
Politics

Iran demands urgent UN Security Council session over US airstrikes

CIA Director John Ratcliffe, testifies before a hearing April 18, 2023, on Capitol Hill in Washington (AP/Manuel Balce Ceneta)
US & Canada

Trump aides pushed war on Iran with Mossad-fed intel, ignoring dissent

This photo released on Nov. 5, 2019, by the Atomic Energy Organization of Iran shows centrifuge machines in the Natanz uranium enrichment facility in central Iran. (Atomic Energy Organization of Iran via AP, File)
Politics

Iran: Minor damage to nuclear sites after US attack, no radiation

The U.S. Capitol, on June 5, 2025, in Washington. (AP)
Politics

US lawmakers condemn Trump’s strikes on Iran; MAGA base frustrated

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS