Japan imported over 200% more liquified natural gas (LNG) from Russia last month than it did during the same month last year.
According to figures provided in a report by the Japanese Ministry of Finance, Tokyo received 450,000 metric tons of LNG from Russia last month, accounting for a 211.2% increase from August 2021. Overall, the finance ministry’s report showed an increase of 67.4% in total imports from Russia and a 21.5% decrease in exports. However, Japan also reduced imports of Russian oil by 20% in the same month.
BREAKING: Japan agrees to ban crude oil imports from Russia "in principle"
— Samuel Ramani (@SamRamani2) May 9, 2022
According to the Kommersant business daily, Japan, which is the world’s largest LNG importer, buys two-thirds of the fossil fuel from Australia, Malaysia, and Qatar. Russia accounts for 9% of Japan’s LNG imports, followed by the United States (US) with 6%.
Japan’s supplies come from Russia come from the Sakhalin-2 oil and gas field. Following the exit of major British oil company Shell PLC over Russia’s invasion of Ukraine, Moscow set up a new company in early August to take control of the plant’s operations, which is located in its Far East region. Japanese trading houses Mitsui & Co. and Mitsubishi Corp. hold 12.5% and 10% stakes in the project, respectively.
Russia says it will not supply oil to countries that support a price cap
— Samuel Ramani (@SamRamani2) July 22, 2022
This means cutting off G7 countries and push Japan to expedite its divestment from Russian energy
The latest report comes just days after Japan, along with other the other G7 members, agreed to “urgently” impose a price cap on seaborne Russian oil. The move aims to reduce Russia’s “ability to fund” the Ukraine war while simultaneously stabilising global energy markets and minimising the “negative economic spillovers, especially on low and middle-income countries.” Commenting on the price cap, which will come into effect on December 5 this year, Japanese Finance Minister Shunuchi Suzuki said it was a “significant step” that could reduce global energy prices and inflation.
During the war, Japan has angered Russia by joining its Western allies to impose tough sanctions over the Ukraine war. In fact, in April, Japan imposed a ban on Russian coal, a significant energy import, as well as machinery and vodka.
⚡️ Japan to ban high-tech export to Russia.
— The Kyiv Independent (@KyivIndependent) May 13, 2022
The ban, due to start on May 20, will include catalysts for oil refining, control devices for machine tools, 3D printers, and spare parts for quantum computing, slowing down Russia’s advance in this field.
In the same month, it also announced the expulsion of eight Russian diplomats over “war crimes” in Ukraine. “Russian troops have killed civilians and have attacked nuclear facilities, gravely violating international humanitarian law. These are war crimes that can never be forgiven,” Japanese Prime Minister Fumio Kishida said at the time. PM Kishida’s administration has also assured that Tokyo will support international efforts to investigate Moscow’s aggression at the International Criminal Court.
Against the backdrop of these burgeoning tensions, Russian submarines fired cruise missiles during exercises in the Sea of Japan in April.
The agency cites Russia’s rerouting oil to India, China, and Turkey as a way to compensate for the lower exports to Europe, the U.S., Japan and Korea. Additionally, “seasonally higher Russian domestic demand has mitigated upstream losses,” reads the report.
— The Kyiv Independent (@KyivIndependent) August 11, 2022
Subsequently, in July, the Japanese defence ministry’s annual white paper recognised Russia as one of the three biggest threats to its national security—alongside China and North Korea. Defence Minister Nobuo Kishi said in the paper that Russia’s “unilateral changes to the status quo by force” will not be tolerated, noting that the Ukraine war is not only a European issue but one that concerns the entire world, due to its implications on ‘global power balance.’
That being said, Tokyo and Moscow’s relationship was complicated even before the onset of the war in Ukraine. Both countries have yet to formally call an end to World War II, as they have not signed a post-war peace treaty. Japan’s punitive measures against Russia since its invasion of Ukraine prompted the Kremlin to announce in March that it had abandoned diplomatic efforts toward signing a peace treaty.
They also have a longstanding dispute over the Russia-controlled Kuril islands, which Japan calls the Northern Territories.