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Sakhalin-1 is important project for Japan -industry minister

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Former project operator Exxon Mobil fully exits Russia

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India's ONGC eyes stake in Russian entity managing Sakhalin 1

TOKYO, Oct 18 (Reuters) - Japan is still checking details of a Russian decree on the giant Sakhalin-1 oil and gas project and will continue talks with stakeholders in the previous operating consortium to decide whether to invest in a new Russian operator.

"We have repeatedly said Sakhalin-1 is a very important project for Japan," Japan's industry minister, Yasutoshi Nishimura, told a news conference on Tuesday. The ministry owns 50% of Sakhalin Oil and Gas Development Co (SODECO), a consortium of Japanese partners including private firms, that holds a 30% stake in Sakhalin-1.

"We will continue to discuss with all parties concerned, including SODECO's private shareholders, and consider specific actions to be taken," Nishimura said.

Russian President Vladimir Putin earlier this month issued a decree to establish a new operator for the formerly Exxon Mobil-led project, authorising the Kremlin to decide whether foreign shareholders could retain stakes in Sakhalin-1. Exxon -fully exited Russia after Moscow this month "unilaterally terminated" its interests in the project.

Another shareholder, India's Oil and Natural Gas Corp plans to take a stake in the new Russian operator of the project as it seeks to retain a 20% share in the asset, three sources familiar with the matter said.

According to Putin's Oct. 7 decree, Sakhalin-1's foreign partners will have one month after the new Russian company is created to ask the Russian government for shares in the new entity. The new Russian company was registered on Oct. 14.

Amid the sharp depreciation of the yen, meanwhile, Nishimura said the government will support exports of Japanese small- and mid-sized companies, domestic investments from foreign investors and also restarts of nuclear power plants, which would help reduce the country's bill for imports of liquefied natural gas (LNG).

"Supporting exports, encouraging foreign investment in Japan, and restarting nuclear power plants will have the effect of softening the impact of the yen's depreciation," he said.

The comments came as the yen fell to a fresh 32-year low against the U.S. dollar on Tuesday. (Reporting by Yuka Obayashi; Editing by Muralikumar Anantharaman and Kenneth Maxwell)