Russia gives 12.5 per cent stake in Sakhalin Energy to Mitsui unit

The Russian government on Tuesday said it approved handing over a 12.5 per cent stake in operator of Russia’s Sakhalin 2 liquefied natural gas plant to Dubai-based MIT SEL Investment Ltd, a subsidiary of Japanese trading house Mitsui & Co (8031.T).

The move comes after Russian President Vladimir Putin signed a decree in June, which created a new legal entity Sakhalin Energy LLC to deal with for buyers and shareholders, which apart from Mitsui & Co also include Shell (SHEL.L) and Mitsubishi Corp (8058.T).

The decree, which followed Western sanctions imposed on Moscow over what it calls a “special military operation” in Ukraine, indicated the Kremlin will now decide whether the foreign partners can stay.

Earlier on Tuesday, Japan’s biggest city gas supplier Tokyo Gas Co Ltd (9531.T) said it signed a long-term contract with Sakhalin Energy LLC to buy liquefied gas.