Japan will base any decisions about energy imports on its national interests, the countrys trade minister Yoji Muto has said, following suggestions from the Trump administration that Japan suspends all purchases of Russian oil and gas.
Since the invasion of Ukraine, Japan has been steadily reducing its dependence on Russian energy, Muto told media earlier today, as quoted by Reuters, following a meeting between U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato, at which Bessent urged Kato to stop buying Russian oil and gas.
In a sign of conformity with is European G7 peers, Japan in September lowered a price cap on Russian crude from 60 to 47.60 although it was more of a token gesture than anything elseJapan has a waiver from the price cap due to the essential nature of Russian oil for its energy security, per Japanese government officials.
We recognise that LNG from Sakhalin-2 plays an extremely important role in Japan's energy security, Trade Minister Muto also said, adding that it accounted for 3 of Japans electricity generation. While small as a percentage, the amount is likely not insignificant in absolute terms, given the size of Japans economy.