The Japanese government said Friday oil from the Sakhalin 2 energy project will be excluded from the price cap policy on Russian oil slated to be imposed in early December by an international coalition led by the United States.
The price cap coalition, including the Group of Seven industrialized nations and Australia, will limit the price of crude oil from Russia from Dec. 5 to deplete Moscow's revenue for its war in Ukraine.
Japanese trading firms have maintained their stake in the Russian energy project, which accounts for around 9 percent of Japan's liquefied natural gas imports, as it is regarded as a vital energy source for the resource-poor country.
If the measure comes into force, Russian oil purchased above the price cap will be subject to an import ban among coalition members.
"As the project also produces crude oil along with LNG, the oil needs to be exported from the perspective of maintaining stable operations," Economy, Trade and Industry Minister Yasutoshi Nishimura told reporters in Tokyo.
Nishimura added that the price cap will be applied to all Russian oil from other sites, including the Sakhalin 1 project, in which Japanese stakeholders, including the government and major trading houses Itochu Corp. and Marubeni Corp., have retained their stake.
The exemptions from the price cap, also aimed at curbing sharp increases in crude oil prices in the market, for Sakhalin 2 will be effective through Sept. 30.
Russia has authorized investment by Japanese trading houses Mitsui & Co. and Mitsubishi Corp. in the Sakhalin 2 project.
The G-7 consists of Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union.
