Japan has reduced its price cap on Russian crude oil to $47.60 per barrel, down from $60, effective Friday, in a move to penalize Moscow for its ongoing war in Ukraine. This decision follows a similar action taken by the European Union in July, which also set its price cap at $47.60 as part of its sanctions package against Russia. Despite this reduction, the measure is largely symbolic since nearly all of Japan’s current imports of Russian crude are exempt from the cap.
Japan has aligned with other G7 nations to phase out Russian oil imports in response to the 2022 invasion of Ukraine. However, it continues to purchase Sakhalin Blend crude, crucial for its energy security, as it constitutes about 9% of Japan’s liquefied natural gas imports. Transactions linked to the Sakhalin project are not affected by the new price cap, according to an official from the industry ministry.
From January to July, Japan imported only 599,413 barrels of crude from Russia, representing a mere 0.1% of its total imports, based on trade data from the finance ministry. Additionally, Japan plans to implement further asset freezes and export controls on Russian entities as part of the international effort to promote peace in Ukraine, as stated by Chief Cabinet Secretary Yoshimasa Hayashi during a regular briefing.