Gazprom will receive 50% of a new Russian entity replacing the Sakhalin Energy liquefied natural gas (LNG) project, Russian news agencies reported on Wednesday, citing a government decree.
Interfax said the new entity will be registered in the city of Yuzhno-Sakhalinsk on the Russian Pacific island of Sakhalin. The Sakhalin-2 LNG plant is located 60 kilometers (37 miles) south of Yuzhno-Sakhalinsk.
Japanese trading houses Mitsui & Co. and Mitsubishi on Tuesday cut the value of their stakes in the Sakhalin-2 LNG project by ¥217.7 billion ($1.62 billion) after Moscow's move to seize control of it.
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