In response to Moscow’s decision to hand over control of the “Sakhalin-1 project” to Russia, the Japanese Ministry of Economy stated that participation in this project is crucial for the nation’s energy security.
Although Japan does not presently import oil from the “Sakhalin-1” project, the ministry representative said that involvement in the project, in which the Japanese company Sodeco maintains a 30% share, is significant from the perspective of energy security.
“The project is a significant non-Middle Eastern supplier of crude oil. The relevance of Japan’s participation as shareholders in Sakhalin-1 from the perspective of the nation’s energy security has not changed “In an interview with NHK, a ministry representative stated.
It is significant that Japan has decreased its imports of crude oil from Russia recently, despite the fact that these imports had decreased to zero in June and then increased in July and August.
Japan does not presently import oil from the project, according to the government.
On October 7, President Vladimir Putin issued an executive order creating a new business to manage the “Sakhalin-1” project. Under the terms of the product-sharing agreement, the new business will purchase the whole property of the consortium.
Within a month, foreign participants in “Sakhalin-1” must notify the Russian government of their assent to purchase shares in the company’s authorised capital proportionate to the shares that each of them now holds under the production sharing agreement.
Author: TASS.
For Japan’s energy security, taking part in the “Sakhalin 1” project is crucial.
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