He noted that the project is important for ensuring stable energy supplies for the country, and the decree of the Russian leader does not mean an immediate cessation of energy supplies.

“Currently, a detailed analysis of information is being carried out on how the rights of Japanese companies will be respected under this decree, as well as what impact this will have on LNG supplies to Japan,” RIA Novosti quoted the diplomat as saying.

According to Hayashi, the Japanese side asked the colleagues from Russia to provide clarifications regarding the timing and other details. 

On June 30, Putin signed a decree on the application of special economic measures in the fuel and energy sector in connection with the unfriendly actions of a number of countries.

According to the document, Sakhalin Energy, the operator of the Sakhalin-2 project, will be replaced by a new, Russian legal entity.

At the same time, the property of Sakhalin Energy will be transferred to the ownership of Russia with simultaneous transfer for free use to the new operator Sakhalin-2.

At the same time, the government will enable foreign shareholders to keep their shares in the new Sakhalin-2 operator, which will be a Russian LLC.

If the shareholders refuse, the state will be able to sell their shares, and transfer the proceeds from the sale to special accounts opened in the names of the shareholders.