Page 5 - GLNG Week 26 2022
P. 5
GLNG COMMENTARY GLNG
Observers have worried that the Kremlin the UN against Russia. But bereft of energy of
will start nationalising key companies in strate- its own, it remains almost entirely dependent on
gic sectors following the imposition of extreme energy imports. Tokyo has said it will not give up
sanctions in March. The West responded to its interests in Sakhalin-2.
Russia’s attack on Ukraine by launching what is Japanese Prime Minister Fumio Kishida said
in effect an economic war, with sanctions that on July 1 that Russia’s decision would not imme-
are specifically designed to denigrate Russia’s diately stop LNG imports from the development,
economy, according to European Commission while Japan’s Industry Minister Koichi Hagiuda
President Ursula von der Leyen, and limit the said the government did not consider the decree
revenues the Kremlin can earn from its raw a requisition, Reuters reported.
materials exports. “The decree does not mean that Japan’s LNG
Putin’s decree creates a new firm that can imports will become immediately impossible,
take over the rights of the consortium’s Sakhalin but it is necessary to take all possible measures
Energy Investment Co. Japan imports 10% of its in preparation for unforeseen circumstances,”
LNG each year from Russia, mainly under long- Hagiuda told reporters.
term contract from Sakhalin-2. Japan has two to three weeks of LNG stocks
“Russia’s decree effectively expropriates for- held by utilities and city gas suppliers and Hagi-
eign stakes in the Sakhalin Energy Investment uda has asked his US and Australian energy
Company, marking a further escalation in ongo- counterparts for alternative supplies.
ing tensions,” said Lucy Cullen, a principal ana- A Mitsubishi spokesperson told Reuters that
lyst from consultancy Wood Mackenzie, as cited the company was also discussing with part-
by Reuters. ners in Sakhalin and Japan’s government about
Japan has condemned Russia’s invasion of how to respond to the decree. Mitsui has yet to
Ukraine and has sided with the West in votes in comment.
Week 26 01•July•2022 www. NEWSBASE .com P5
