Prime Minister Fumio Kishida announced on the 31st that Japan will not withdraw from the oil and gas development project “Sakhalin 2” in Sakhalin, the Russian Far East. He replied at the plenary session of the House of Representatives.
Prime Minister Kishida emphasized that Sakhalin-II “has an interest in its own country and contributes to a long-term and inexpensive stable supply of LNG (liquefied natural gas), which is an extremely important project for energy security.” He also said in the seven major countries (G7) that “we are supposed to consider each country’s circumstances and provide time to secure a sustainable alternative supply.”
Mitsui & Co. and Mitsubishi Corporation are participating in Sakhalin 2. International oil capital (major) British Shell (formerly Royal Dutch Shell) has announced that it will withdraw.
Prime Minister Fumio Kishida
Photographer: Kiyoshi Ota/Bloomberg
Regarding the depreciation of the yen, he said, “Foreign exchange stability is important and rapid fluctuations are not desirable. We will respond appropriately to foreign exchange policies while maintaining close communication with currency authorities such as the United States.” He declines to comment on foreign exchange market intervention.
Regarding economic policy management, he said, “We do not focus on either interest rates or prices, but take appropriate measures in consideration of various financial and economic trends.” “We look forward to continued efforts to achieve the price stability target of 2%,” the Bank of Japan said.
(Add a statement regarding currency exchange)
