Putin ordered the new energy project operator to be damaged by Japan's worries and interests

Russian President Vladimir Putin signed a decree on June 30 to set up a new company to operate the energy cooperation development project "Sahalin 2". Japanese media reported on the 1st that two Japanese companies holding shares may be forced to withdraw, and they may further push up Japan's natural gas and electricity prices.

The "Sahalin No. 2" project is located in the continental rack of the Sahalin Island of Russia. It mainly minimizes oil and natural gas. The project involves the oil reserves of about 100 million tons and the natural gas reserves of more than 400 billion cubic meters. According to Reuters data, this project has a liquefied natural gas output accounting for about 4%of the world, mainly providing Asian countries.

About 9%of Japan's liquefied natural gas imported from Russia, almost all from the "Sahalin 2" project. After the Family Film Discretion of the Fukushima First Nuclear Power Station in March 2011, the power generation of the Japanese nuclear power plant decreased significantly, and the dependence on fossil fuel such as natural gas was enhanced.

The original operator of the "Sahalin 2" project is Sahalin Energy Investment Co., Ltd. Among them, Russian Natural Gas Industry Co., Ltd. holds more than 50%of its shareholding, and Japan Mitsui Products and Mitsubishi Commercial Corporation holds 12.5%and 10%, respectively.

According to the new decree signed by Putin, Russia will set up a new company to fully take over the personnel and business of Sahalin Energy Investment Co., Ltd. Russia's Natural Gas Industry Co., Ltd. will continue to retain the original shares. Foreign investors need to apply for the reservation of shares within one month, and the Russian government decides whether to approve.

Russia said that this new law intended to protect the interests of Russian countries from "unfriendly behavior" damage from Western countries such as the United States. After Russia launched special military operations against Ukraine in late February, Japan followed the United States and European countries to impose sanctions on Russia and was listed as a "unfriendly country" by Russia.

After Putin signed a new law, the stock price of Mitsui Products and Mitsubishi Commercial Company fell, with a decline of more than 5%. The two companies stated that they are verifying the relevant situation and considering the response plan.

Mu Yuan, deputy chief of the Japanese cabinet official room, told media reporters on the 1st that the Japanese government was evaluating the impact of Russia's actions, and this stage could not answer how to deal with it. He said: "It should not damage Japan's resources related interests."

Japanese media worried that the two companies may be forced to withdraw from the "Sahalin 2" project, which in turn has pushed Japan's natural gas and electricity prices. In the past few days, Japan has encountered rare high temperature weather, the power supply is tight, and the government has called for the people to save electricity.

Japan's Prime Minister Kishida said in March that Japan will not withdraw from the "Sahalin 2" project, which is essential to ensure Japanese energy security. According to his statement, this project is Japan's "long -term and stable supply of cheap and natural gas", and the withdrawal of this project does not meet the Japanese policy.

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