Japan Expresses Understanding for New US Sanctions on Russian Oil Companies

Tokyo Aligns with Washington's Strategy

The Japanese government has officially expressed its understanding of the United States' recent decision to impose new sanctions on major Russian oil companies. This move by Washington targets entities such as Rosneft and Lukoil, with the explicit aim of reducing Russia's energy revenues to pressure Moscow into halting its invasion of Ukraine. Chief Cabinet Secretary Minoru Kihara stated on October 23 that Japan recognizes these sanctions are 'intended to get Russia to stop its invasion of Ukraine as soon as possible by reducing Russian energy revenues'.

Details of US Sanctions and International Coordination

The latest US sanctions, announced by the Trump administration, mark a significant escalation in efforts to curb Russia's ability to finance its military operations. These measures involve freezing all US-based assets belonging to the targeted companies and prohibiting US entities from conducting business with them. Furthermore, the US has indicated a readiness to impose secondary sanctions on foreign financial institutions that continue to engage with Rosneft and Lukoil. This strategy aligns the US more closely with actions taken by allies like the United Kingdom and the European Union, which have also implemented fresh packages of sanctions. Japan, as a member of the Group of Seven (G7), has consistently supported international efforts to exert economic pressure on Russia.

Japan's Balancing Act: Sanctions and Energy Security

While supporting the US sanctions, Japan continues to navigate its complex energy landscape. The nation, heavily reliant on energy imports, has emphasized its commitment to national interests and energy security. Trade Minister Yoji Muto and Finance Minister Katsunobu Kato have reiterated Japan's intention to coordinate with international partners while safeguarding domestic energy needs. Japan has already taken its own steps, including imposing asset freezes and export restrictions on numerous Russian entities and individuals. In September, Tokyo lowered its price cap on Russian seaborne crude oil from $60 to $47.60 per barrel, mirroring similar actions by the EU and other G7 nations. However, Japan maintains its imports of liquefied natural gas (LNG) from the Sakhalin-2 project, which accounts for approximately 9% to 10% of its total LNG imports and 3% of its electricity generation, deeming it crucial for its energy stability. Despite pressure from US officials like Treasury Secretary Scott Bessent to halt all Russian energy imports, Japan has not set a definitive timeline for a complete phase-out of Russian gas, citing the importance of the Sakhalin-2 project under long-term contracts extending into the 2030s.