Japan plans to hold onto its investments in major Russian energy projects for now, according to people with knowledge of the matter, despite ongoing aggression in Ukraine and a high-profile exit by Big Oil.
Unless the situation with Russia drastically changes, Japanese companies and consortia have decided keep their stakes in Sakhalin 1, Sakhalin 2 and Arctic LNG 2 projects, according to people at the firms and government officials. Russian oil and liquefied natural gas export projects are geographically closest to Japan and are strategically important for the resource-poor Asian nation, said the people, who requested anonymity to discuss private details.
BP PLC, Shell PLC and Exxon Mobil Corp. shocked the energy industry when they walked away from Russian assets worth billions of dollars after Moscow’s invasion of Ukraine. In contrast, Japan has dragged its feet on a decision because it can’t easily replace fuel from its Russian oil and gas assets while it also doesn’t want to upset allies that are ratcheting up pressure to end the war.
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