By Peter Landers
TOKYO–Japanese trading and investment company Mitsui & Co. said Monday that it has written down the value of its investments in two Russian liquefied natural gas projects by a total of 80.6 billion yen ($620.7 million).
Mitsui said it has reduced the fair value of its 12.5% stake in the Sakhalin 2 LNG project by Y44.1 billion, and it has reduced the fair value of its investments in the Arctic 2 LNG project in Siberia by Y36.4 billion.
In addition, Mitsui said it recorded a loss of Y20.9 billion in connection with the Russian LNG projects, a figure that includes provisions against potential losses on loan guarantees the company has made.
In contrast to US and European energy companies that have written down most or all of the value of their stakes in Russian ventures, Mitsui continues to hold significant exposure to Russia. It said its net position of investments, loans and guarantees was Y386.6 billion as of March 31, after subtracting the provisions on guarantees.
Write to Peter Landers at [email protected]
Credit: www.marketwatch.com /