Japan’s Mitsui to comply with U.S. sanctions on Russia’s Arctic LNG 2

Japan’s Mitsui has affirmed its commitment to complying with restrictions imposed by fresh U.S. sanctions related to Russia’s Arctic LNG 2 liquefied natural gas project, in which Mitsui holds a stake. The company stated that it is aware of the additional U.S. sanctions and remains committed to complying with international sanctions. Mitsui added that it is in communication with its project partners, the Japanese government, and other relevant parties “to discuss next steps.”

However, the new U.S. sanctions do not apply to the Arctic LNG 2 project itself or its shareholders. They primarily target several Russian companies and a UAE firm providing architecture, construction, and engineering services. Additionally, the sanctions apply to a Russian ship construction company that will operate two LNG floating storage units for Arctic LNG transshipments via the Northern Sea Route, as well as to two storage vessels set to operate on the route.

The Arctic LNG 2 project, situated in Russia’s Arctic region, is operated by the Russian company Novatek (NVTK.MM). Mitsui and fellow Japanese firm JOGMEC together hold a 10% stake in the project. While Mitsui has affirmed its commitment to comply with the sanctions, a Japan government source mentioned that these measures could complicate how Mitsui and JOGMEC provide support for the project and potentially cause delays in production from Arctic LNG 2.

Novatek is planning to launch the first production train at the Arctic LNG 2 project towards the end of the year. Under their agreements, Mitsui and JOGMEC are set to receive a combined 2 million metric tons of LNG per year from the project. The nearby Yamal LNG plant, which began operations in 2017, has showcased Russia’s increasing prominence in the LNG sector. The Arctic LNG 2 project is designed to run three production lines with an annual production capacity of 19.8 million tons.

Despite Japan’s condemnation of Russia’s invasion of Ukraine, the country maintains stakes in major fossil fuel projects in Russia, emphasizing energy security. Given that Japan imports nearly all of its energy, it continues to engage with strategic energy projects even amid geopolitical tensions and sanctions.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Challenges mount for India-Middle East-Europe economic corridor amidst regional turmoil

A comprehensive initiative aimed at redirecting trade between Europe and Asia through the Middle East faces the risk of coming to a standstill before gaining momentum. The progress of the India-Middle East-Europe Economic Corridor (IMEC), a project endorsed last year by Washington and…

Sri Lanka to authorize Sinopec to commence $4.5 billion refinery project

Sri Lanka is expected to give the green light on Monday for a $4.5 billion refinery project proposed by Chinese state refiner Sinopec. The South Asian nation, currently facing its most severe economic crisis in over 70 years, is actively seeking new investments and ensuring local fuel…

Brazil’s Vale to build Middle East mega hubs to make low-carbon iron products

Brazilian mining giant Vale SA is embarking on an ambitious project to create “mega hubs” in Middle Eastern countries. These hubs, which will specialize in producing low-carbon iron ore products for the steel industry, are set to begin construction next year. Vale had previously revealed plans to establish these facilities in Saudi Arabia, Oman, and the United Arab Emirates.

Stay informed

error: Content is protected !!