TOKYO : Japan lowered its price cap on Russian crude oil to $47.60 per barrel from $60, effective on Friday, to punish Moscow for its continued war in Ukraine, although the move is largely symbolic as nearly all Japan’s current Russian crude imports are exempt.
The measure follows the European Union’s action in July to lower its price cap on Russian crude to $47.60 as part of its 18th sanctions package against Moscow.
Tokyo has agreed with other G7 countries to phase out Russian oil imports in response to Moscow’s 2022 invasion of Ukraine.
However, Japan continues to buy Sakhalin Blend crude, a byproduct of liquefied natural gas production at the Sakhalin-2 project, which is vital to Japan’s energy security as it accounts for about 9 per cent of its LNG imports.
Transactions related to the Sakhalin project are exempt from the price cap rule, an official at the industry ministry said, adding that the reduced oil price cap is expected to have no actual impact on Japan’s crude procurement.
Japan bought 95,299 kilolitres, or 599,413 barrels, of crude from Russia between January and July, accounting for just 0.1 per cent of its total imports, finance ministry trade data showed.
Japan will also impose additional asset freeze and export control sanctions on entities in Russia and other countries to join the international effort to achieve peace in Ukraine, Chief Cabinet Secretary Yoshimasa Hayashi told a regular briefing.
