Why it matters:
Tokyo is resisting Washington's efforts to impose new sanctions on two major Russian oil companies, and limit Russia's oil revenues. Even though Japan is a major ally of the Uniuted States in East Asia, its refusal to toe the US line has once again highlighted Trump's limited ability when it comes to curbing Russia's oil and gas revenues.
The big picture:
Donald Trump, prior to the start of his Asian tour, had urged Russian energy buyers – including Japan – to halt their imports and impose new sanctions on two major Russian oil companies, Rosneft and Lukoil, to increase pressure on Moscow to end the war in Ukraine. Moscow supplies nearly 9% of Japan's total liquefied natural gas (LNG) imports, and the companies Mitsui and Mitsubishi also hold shares in the large Sakhalin-2 projects in Russia.
What they're saying:
The two Japanese officials, who wished to remain anonymous, said on Thursday that the issue of Russian liquefied natural gas (LNG) was raised during Monday's meeting between Donald Trump and Sanae Takaichi, leaders of Washington and Tokyo, and the Japanese prime minister emphasized the need for stable energy supply for her country during this discussion.
Japan's Ministry of Commerce had also previously rejected the Trump administration's request to stop oil and gas imports from Russia, emphasizing that the country's policies are determined based on national interests.
What we're hearing:
According to the economic newspaper "Nikkei Shimbun", Sanae Takaichi, who was elected last week as Japan's first female prime minister, told Donald Trump during the meeting: 'If Japan stops purchasing gas from Russia, only China and India will be pleased.'
Context:
China and India are among the main buyers of Russian energy, although many Indian refineries have halted new orders for Russian oil following the latest U.S. sanctions and are awaiting clarification from their government.
In recent years, Japan has increased its purchase of liquefied natural gas from the United States to reduce its dependence on Australia and Russia and to prepare for the expiration of the Sakhalin-2 gas supply contracts between 2028 and 2033.
In this context, Ryosei Akazawa, Japan's Minister of Economy, Trade, and Industry, warned last week that replacing Russian gas with other sources would be very costly and could lead to an increase in electricity prices in the country.
Currently Japan imports less than 1 percent of its oil from Russia, and most of Japan's oil imports comes from the West Asia.
Go deeper:
Japan Elects First Female Prime Minister: Sanae Takaichi Makes History
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