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Japan has reduced the price cap on Russian oil from $60 to $47.60 per barrel, effective Friday, September 12, to punish Moscow for continuing its war against Ukraine, Reuters reported.
This move aligns with the European Union’s July decision to lower its own cap to $47.60 as part of the EU’s 18th package of sanctions against Russia. However, a representative of Japan’s Ministry of Industry said the lower cap will have no practical impact on Japan’s oil purchases.
Limited Impact on Japan’s Imports
Tokyo agreed with other G7 countries to gradually end imports of Russian oil in response to the 2022 invasion of Ukraine. But Japan continues to buy Sakhalin Blend oil under the Sakhalin-2 project, which remains exempt from the price cap rule because of its crucial role in Japan’s energy security, supplying about 9% of its LNG imports, the ministry official noted.
According to the Finance Ministry, from January to July, Japan purchased 95,299 kiloliters (about 599,413 barrels) of Russian oil—just 0.1% of total imports.
New Sanctions Target Russian and Belarusian Entities
Chief Cabinet Secretary Yoshimasa Hayashi announced that Japan is also imposing additional sanctions, including asset freezes and export restrictions on entities in Russia and other countries, including Belarus.
Japan’s Foreign Ministry website lists 47 organizations and 9 individuals directly involved in the occupation of Crimea or in destabilizing eastern and southern Ukraine.
New Zealand’s foreign minister, Winston Peters, also announced on September 12 that the country is lowering its own price cap on Russian crude oil, joining Canada, the EU, and the UK.
