Securities of Japanese companies Mitsui and Mitsubishi that own stakes in the Sakhalin-2 project, collapsed after Russian President Vladimir Putin signed a decree to transfer the property of the Sakhalin-2 operator company to the state.
Thus, Mitsui shares fell 6.14 percent on July 1 to 2,810 yen ($20.8) a share, while Mitsubishi shares dropped by 5.6 percent to 3,811 yen ($28.2) compared to June 30.
Mitsui owns 12.5 percent of the project, Mitsubishi holds 10 percent, and Shell - 27.5 percent minus one share. Russian Gazprom owns 50 percent plus one share.
On July 1, Putin ordered to replace the operator of the Sakhalin-2 project - Sakhalin Energy - and transfer the company's property to the state. All rights and obligations of the operator will be transferred to the state as well.
The shares in the authorized capital of the new Sakhalin-2 operator that is to be established instead of Sakhalin Energy, will be owned by Gazprom Sakhalin Holding and the new operator company. Foreign participants must notify the Russian government a month in advance of their consent to accept their shares in the new operator, in proportion to the current ones. The Japanese government hopes that Moscow's decision will not affect its rights and interests in the project.
The Sakhalin-2 project is an oil and gas development in Sakhalin Island, Russia. It includes development of the Piltun-Astokhskoye oil field and the Lunskoye natural gas field offshore Sakhalin Island in the Okhotsk Sea, and associated infrastructure onshore.
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