General – Russia/Ukraine
Japan said today it will take ‘appropriate action’ on energy projects in Russia involving Japanese state-owned companies, as major Western oil companies led a withdrawal from Russia in the wake of the invasion of Ukraine.
Industry minister Koichi Hagiuda announced that Japan’s decisions will be based on understandings reached in discussions with G7 nations and other governments over how to respond to the invasion.
“We will take appropriate action on the energy projects in Russia in which JOGMEC and NEXI are involved, based on the discussions with G7 and other countries,” Hagiuda said at a news conference, referring to state owned Japan Oil, Gas and Metals National Corp (JOGMEC) and Nippon Export and Investment Insurance (NEXI).
Japanese trading houses Mitsui & Co (8031.T) and Mitsubishi Corp (8058.T), which own stakes of 12.5% and 10% in Sakhalin 2 project respectively, said separately that they are examining Shell’s announcement earlier this week. They said they would consider the situation with the Japanese government and partners for the project, without giving any further details.
The Japan Arctic LNG consortium made up of JOGMEC and Mitsui owns a 10% stake in the Arctic LNG 2 project in Russia. The project is led by Russian gas producer Novatek and is scheduled to start production next year.
Japan wants to work closely with the IEA member countries on oil reserves and other issues. The country is willing to release oil from its national reserves as needed in cooperation with the IEA and relevant countries.