Mitsui & Co., a major trading company that invests in Russia's LNG (liquefied natural gas) development project, has been subject to sanctions by the US government, and has made a reserve of over 12 billion yen in anticipation of losses. It was announced that this amount has been included in this year's financial results.
Last November, the U.S. government imposed sanctions on Russian companies involved in the LNG development project ``Arctic LNG2'' in the Russian Arctic, in which Mitsui & Co. and other companies have invested.
In response to this, Mitsui & Co. announced on the 2nd that it had recorded a provision of 12.3 billion yen in anticipation of a loss in its financial results for the nine months ending in December of last year.
The project was originally scheduled to begin supplying LNG by last year, but it is now expected to be affected by sanctions.
In an online press conference, CFO Tetsuya Shigeta said, ``Complying with the sanctions is our top priority, and we would like to respond in cooperation with the Japanese government and other relevant parties.''
On the other hand, regarding the impact if Mr. Trump becomes the Republican candidate and is re-elected in this fall's US presidential election, he said, ``We are watching it very closely.We have not yet determined which projects are expected to have a negative impact, but the subsidy tax system The biggest concern is that the rules will be suddenly changed, such as with support from the government."