President Putin has signed a presidential decree to change the company of the business entity to a Russian company for the oil and natural gas development project "Sakhalin 2" being promoted in Sakhalin in the Far East of Russia with the investment of a major Japanese trading company.
It is unclear what kind of impact this will have on investment from Japan.
Regarding the oil and gas development project "Sakhalin 2", President Putin signed a presidential decree on the 30th of last month to change the business entity "Sakhalin Energy" to a Russian company.
The presidential directive cites "a threat to Russia's national interests and economic security" as a factor, and after the Russian government establishes a new company, current shareholders agree to acquire shares within a month. You need to be notified if you want to.
"Sakhalin Energy", the business entity of "Sakhalin 2", includes ▽ Russia's largest government-affiliated gas company, Gazprom 50%, ▽ UK major oil company Shell 27.5%, from Japan ▽ Mitsui & Co. 12.5%, ▽ Mitsubishi Corporation has a 10% stake, but Shell announced its withdrawal from the business in February.
It is unclear how the change of business entity to a Russian company will affect the investment of two major Japanese trading companies in the future.