Image: Reuters Berita 24 English - Following remarks made by former Russian president Dmitry Medvedev warning of a loss of oil and gas supp...
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| Image: Reuters |
Berita 24 English - Following remarks made by former Russian president Dmitry Medvedev warning of a loss of oil and gas supplies to Japan, shares of Japanese trading companies Mitsui & Co and Mitsubishi Corp fell on Wednesday.
By lunchtime, Mitsubishi shares had fallen 5.4 percent and Mitsui shares had fallen 5.7 percent.
The deputy chairman of the Russian Security Council, Dmitry Medvedev, said on social media on Tuesday that Japan "would have neither oil nor gas from Russia, as well as no participation in the Sakhalin-2 LNG project."
The Group of Seven (G7) nations had decided to set a restriction on the price of Russian oil at around half its current level, the Japanese Prime Minister Fumio Kishida had stated over the weekend.
In an effort to cut Moscow's income and drain its war chest, the G7 leaders last week agreed to consider prohibiting the transit of Russian oil that has been sold beyond a particular price. However, they did not specify a specific amount for the cap.
In a move that could drive away Shell and Japanese investors, Russia declared on Friday that it has taken full control of the Sakhalin-2 gas and oil project in the country's far east.
One of the biggest LNG projects in the world, Sakhalin-2 sends around 60% of the LNG it produces under long-term contracts to Japan. Mitsubishi and Mitsui each have a 12.5% and 10% stake in the project, respectively.
