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Russia has approved the transfer of a 10% stake in the new operator of the Sakhalin-2 liquefied natural gas (LNG) project in the Russian Far East to Japan’s Mitsubishi, reported Reuters, citing a government order.
Russian Prime Minister Mikhail Mishustin signed the order approving Mitsubishi’s request to transfer a 10% stake in the old operator to an equal stake in Sakhalin Energy, a new entity responsible for the Sakhalin-2 project.
In the wake of Western sanction on Russia due to its invasion of Ukraine, the Russian government signed a decree in June 2022 to transfer the operatorship of the Sakhalin-2 project to a new legal entity.
Said to be one of the one of the world’s largest integrated, export-oriented oil and gas projects, the Sakhalin-2 project comprises three offshore platforms, an onshore processing facility, an oil export terminal, an LNG plant, and offshore and onshore pipelines.
The latest approval comes a day after Russia approved the transfer of a 12.5% stake in Sakhalin Energy to Mitsui’s subsidiary MIT SEL Investment.
Last week, Mitsui and Mitsubishi decided to retain their stakes in Sakhalin Energy, following a request made by the Japanese Government to ‘think positively’ about joining the new entity.
Japan considers the Russian LNG project a key source for its stable energy supplies amid market disruptions.
Earlier this year, Shell decided to withdraw from the Sakhalin-2 project. It has since been in talks with potential buyers.