Russia gives 12.5% stake in Sakhalin Energy to Mitsui unit

An employee of Sakhalin Energy stands at the Sakhalin-2 project's liquefaction gas plant in Prigorodnoye
An employee of Sakhalin Energy stands at the Sakhalin-2 project's liquefaction gas plant in Prigorodnoye, about 70 km (44 miles) south of Yuzhno-Sakhalinsk October 13, 2006. REUTERS/Sergei Karpukhin (RUSSIA)
  • This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Aug 30 (Reuters) - The Russian government on Tuesday said it approved handing over a 12.5% 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). read more

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. read more

Reporting by Andrey Ostroukh; editing by Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

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