US oil giant Exxon Mobil says it has discontinued operations at the Sakhalin-1 oil and gas project in Russia's Far East.

Exxon told NHK on Thursday that the Russian government unilaterally terminated the company's interests in the Sakhalin-1, and that the project has been transferred to a Russian operator.

A new entity to take over the project was set up last Friday, one day after the Russian government issued a decree to that end.

In March, Exxon announced its intention to end its operations in response to the Russian invasion of Ukraine.

Japan has a 30 percent stake in the project through Sakhalin Oil and Gas Development Company. That holding is half owned by the Japanese government, and the rest by businesses including Japan Petroleum Exploration Co. and Japanese trading firms.

The Japanese government says it will decide how to deal with its stake through discussions with the parties involved.