HomeLatestG7 member shopping for Russian oil above Western value cap - WSJ

G7 member shopping for Russian oil above Western value cap – WSJ

Energy-dependent Japan agreed to assist the measure to restrict Moscow’s revenues, however then requested for an exemption from US

One of the Group of Seven (G7) nations, Japan, has began shopping for Russian crude oil above the $60-a-barrel agreed cap after securing a US-authorized exception, the Wall Street Journal reported on Sunday.

According to the news outlet, Tokyo, which depends closely on vitality imports, reportedly obtained the concession from Washington, saying it wanted it to make sure entry to Russian gas. Official statistics present that, within the first two months of this 12 months, Japan purchased round 748,000 barrels of Russian oil for roughly $70 a barrel.

Tokyo joined the value cap on Russian oil imports late final 12 months, as a part of a coordinated effort to decrease Moscow’s oil revenues pitched by Japan’s long-time ally, the United States, and supported by the G7, the EU, and Australia. However, Tokyo exempted oil imports from the Sakhalin-2 venture from the cap, stating that such a transfer would endanger the nation’s vitality safety.

An official at Japan’s Ministry of Economy, Trade and Industry informed the Journal that Tokyo wished to make sure entry to Sakhalin-2’s foremost product, pure fuel, which is liquefied and shipped to Japan. “We have done this with an eye toward having a stable supply of energy for Japan,” the official reportedly mentioned.

He defined {that a} small amount of crude oil is extracted alongside the pure fuel at Sakhalin-2 and must be bought to make sure liquefied pure fuel (LNG) manufacturing continues. “The price is decided by negotiations between the two parties,” the unnamed official informed the Journal.

The report identified that Russia accounts for almost one-tenth of Japan’s natural-gas imports, most of it from Sakhalin-2, with volumes of purchases by Japan rising 4.6% final 12 months compared to 2021.

The Journal additionally cited Japanese officers as saying it will be self-defeating to surrender entry to Russian LNG as a result of Moscow might promote it to China.

Japanese Prime Minister Fumio Kishida introduced late final month that the nation’s firms would proceed to take part in Russian vitality tasks on Sakhalin Island as a result of their significance for Tokyo’s vitality safety.

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