(Bloomberg) -- Japanese Prime Minister Fumio Kishida confirmed Friday that the country wouldn't pull out of the Sakhalin-1 offshore oil joint venture with Russia.
The move was widely expected as Japanese officials have stressed since Russia's invasion of Ukraine that both the Sakhalin-1 and Sakhalin-2 projects are crucial for Japan's energy security.
“Our country's policy is not to withdraw,” Kishida told parliament.
Sakhalin-1, which is north of Japan, is partly owned by a consortium of Japanese organizations including the trading company Marubeni Corp. and the government. Energy giant Exxon Mobil Corp, also a stakeholder in the project, announced a month ago it would withdraw.
Kishida has sought to stay closely in line with the U.S. and Europe on sanctions against Russia over its invasion of Ukraine, which it sees as potentially setting a precedent for Chinese action on Taiwan or disputed East China Sea isles.
But the resource-poor country has drawn the line at cutting energy ties. Kishida said Thursday that Japan would stay in the Sakhalin-2 liquefied natural gas export project, while Trade Minister Koichi Hagiuda said earlier Friday that Japan would also remain part of the Arctic LNG 2 project, which is currently under construction and majority-owned by Novatek PJSC.
Japan Seeks to Boost Energy Security and Cut Russian Dependence
At the same time, Japan is seeking to curb dependence on Russia as the ongoing war in Ukraine threatens to cut off supplies of everything from natural gas to precious metals.
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
