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No easy exit for Japan from Russia's Sakhalin-2 LNG project

Dilemma between energy security and sanctions to bedevil Tokyo for some time

The Sakhalin-2 project, on Russia's island of Sakhalin, is important source of energy for Japan.    © Reuters

TOKYO -- Despite Shell exiting a landmark LNG plant that has served as a symbol of cooperation between Tokyo and Moscow, Japanese trading houses Mitsui & Co. and Mitsubishi Corp. are sticking with the Sakhalin-2 project, the source of nearly 10% of Japan's liquefied natural gas imports.

The situation underscores a dilemma Japan and its companies will increasingly find themselves as the U.S. and Europe pile on more sanctions against Russia.

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