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Ukraine war

Japan and France freeze investment in Russia's Arctic LNG 2 project

Start of $23bn plan could be delayed as sanctions keep banks from sending money

A freeze in financing for Arctic LNG 2, a $23 billion development project in Russia, may delay the start of its operations, which had been slated for 2023. (Photo by Yohei Ishikawa).

TOKYO -- Japan and France have stopped making new investments in a major liquefied natural gas development project in the Russian Arctic due to economic sanctions against Russia for its invasion of Ukraine, Nikkei has learned.

The freeze in financing for Arctic LNG 2, a $23 billion (2.7 trillion yen) development project, is the first known such case for a resource project in which Japanese companies hold an interest. Economic sanctions against Russia have barred financial institutions from sending the money required to finance the project.

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