Russia on Tuesday authorized investment by a Tokyo trading company in the Sakhalin 2 oil and gas energy project, Tass news agency said, a step toward Japan procuring stable supplies of liquefied natural gas.

The Russian government approved a plan for Mitsui & Co. to hold 12.5 percent of the project's new operator, set up by Russia in early August. The holding would match Mitsui's stake in the former operator of the project.

Mitsubishi Corp., another major Japanese trader, held 10 percent in the previous company and has said it also intends to keep its stake in the new company.

The Tokyo-based companies' moves to invest in the new operator, set up by Moscow to take control of the natural resources project in the Russian Far East, are taking place as Japan aims to secure a stable supply of LNG amid market disruptions following Russia's invasion of Ukraine.

The new operator, established on Aug. 5 under a decree by Russian President Vladimir Putin, has offered the same contractual terms to energy companies as under the previous entity.

An affiliate of Russian energy company Gazprom has a controlling stake in the new operator.

Gazprom had a stake of around 50 percent in the old operator, while British oil major Shell PLC held an approximately 27.5 percent share in the predecessor before deciding to exit over Russia's military aggression against Ukraine.

The Sakhalin 2 project accounts for around 9 percent of resource-poor Japan's LNG imports and is viewed as important by Tokyo.

==Kyodo

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