The Moscow press claims Tokyo was pressured to guarantee credits for sale of equipment to Russia's state owned Gazprom monopoly by metallurgical and trading firms hurt by Japan's recession (OGJ, Sept. 7, Newsletter).
The newspaper Izvestia said Russian orders have played an important role in keeping Japanese metallurgical plants busy and Japanese business firms were the main victims of Tokyo's year-long freeze on pipe deliveries to the former U.S.S.R. following Russia's failure to pay for previous pipe shipments.
A contract providing for $300 million in Japanese pipe, machinery, and equipment deliveries to Russia was signed late last month in Tokyo by Gazprom and a Japanese group of metallurgical companies and trading firms (OGJ, Oct. 12, p. 26). Izvestia said a second and similar contract with Gazprom worth $400 million will be signed soon. Both contracts grant Russia a 5 year deferral of payments, with the Japanese government insuring the transactions.
Negotiations are under way on another contract for delivery of $700 million worth of Japanese machinery and equipment for use in Russian oil fields. This deal also will be covered by Japanese government export insurance. Izvestia said the three contracts show Japan's business interests can outweigh the official Japanese government policy of refusing to establish normal trade relations with Russia until the two nations settle their territorial dispute regarding the Kurile Islands.
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