Putin urges more investment from Japan firms in energy development+

TOKYO, May 12 Kyodo -
Visiting Russian Prime Minister Vladimir Putin called on Japanese business
leaders Tuesday to invest more in Russia's project to develop energy resources
in its far eastern area, while stressing that Moscow is ready for ''dialogue''
with companies in Japan.
In a luncheon meeting with the business leaders, Putin said the first stage of
a massive pipeline project to take oil from Siberia to the Pacific coast has
been completed and Russia is seeking Japanese investments in the second part of
the project, the Japan Business Federation said.
''If (you) hope for an early completion (of the pipeline), I would like more
Japanese firms to participate in the project,'' Putin was quoted as saying by
officials of the federation, known as Nippon Keidanren, the most powerful
business lobby in Japan.
Energy development issues dominated the topics of the meeting, the officials said.
The participants, including Nippon Keidanren Chairman Fujio Mitarai, expressed
a shared view that the development of Russia's far eastern region will be
crucial for Japan to secure a stable supply of energy resources as roughly 40
percent of oil and gas exports from Sakhalin are aimed at the Japanese market.
Mitarai said it is important for Japanese businesses to maintain a good
relationship with Russia, an energy power, as he referred to a just-started
major liquefied natural gas project in Sakhalin, whose first shipment to Japan
arrived in February, according to the officials.
''Now we recognize our bilateral relations have become strong,'' Mitarai was
quoted as telling Putin. ''However, considering Russia's potential, there are
some more chances (for them) to get stronger,'' Mitarai said, but at the same
time warned of the impact from the global financial turmoil and subsequent
economic downturn.
During the meeting, also attended by Russian business leaders, some Japanese
participants said there is a need to prevent a rise in protectionism in global
trade as a result of the economic recession.
Putin reiterated his resolve to fight protectionism and ensure free trade, the
officials said.
Earlier in the day, Putin delivered a speech to an economic forum organized by
Nippon Keidanren, saying business ties between Japan and Russia have
strengthened in recent years, welcoming strong commitments from both the public
and private sectors.
''Our economic relationship has entered a new level,'' Putin said, noting that
the value of bilateral trade rose to nearly $30 billion last year from some $10
billion in 2005, and adding, ''We have a brighter business economic outlook.''
Putin also said Russia is ready to ''hold direct dialogue with Japanese
businesses,'' including Japanese automakers operating in Russia or planning to
open plants in the country.
Also on Tuesday, Japan Oil, Gas and Metals National Corp., a government-backed
entity, said it will establish a joint venture with a local firm, Irkutsk Oil
Co., for a feasibility study to check the amount of oil reserves in eastern
Siberia.
The Japanese corporation said it will hold a 49 percent stake and Irkutsk Oil a
51 percent stake in the joint venture, which is scheduled to spend some 15
billion yen (about $154 million) for the study that will continue until 2013.
==Kyodo