Even though the US and Europe have capped the price of Russian oil at $60, one of Washington’s closest allies in Asia is buying oil from Moscow and even at a higher price.
In the first two months of 2023, Japan bought about 748,000 barrels of Russian oil instead of 6.9 billion yen. This price corresponds to about $52 million, or just under $70 per barrel.
When the G7 countries set a ceiling on the price of Russian oil, Tokyo managed to secure an exemption until September 30 for purchases at Sakhalin II.
At the same time, Tokyo has increased its purchases of Russian natural gas by 4.6% over the past year compared to last year, as it receives natural gas from Sakhalin-2, which is liquefied and then transported to Japan.
As a representative of the Ministry of Finance, Trade and Industry of Japan explained, Tokyo mainly receives natural gas from Sakhalin-2. A small amount of crude oil is produced along with natural gas and must be sold to continue production of liquefied natural gas (LNG).
Japan’s Mitsui and Mitsubishi own a 22.5% stake in Sakhalin-2, which they fought for – with help from Tokyo – when the Russian government restructured the project last year and appointed a new Russian operator.
Japan has almost no fossil fuels of its own and relies on imported natural gas and coal for electricity generation. Japanese officials have argued that it would be “suicidal” to stop buying LNG from Moscow, as if they did, Russia would sell it to China.
According to the Wall Street Journal
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Source: Kathimerini
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.