Japan Trading Houses Fall on Putin’s Sakhalin Gas Project Decree

  • Mitsui & Co, Mitsubishi Corp have a 22.5% stake in Sakhalin-2
  • Putin signed order to move the plant to a new Russian entity
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Shares of Japanese trading houses dropped after President Vladimir Putin signed a decree to transfer the Sakhalin-2 natural gas plant to a new Russian entity, a move that could force the companies to exit their investment in the key energy project.

Mitsubishi Corp. and Mitsui & Co., which own a combined 22.5% of the Sakhalin project, both tumbled. Mitsui fell as much as 5.7%, while Mitsubishi declined 5%.