Japan’s Trade Minister Yoji Muto said on Tuesday that the country has been “steadily reducing dependency on Russian energy in the wake of the Ukraine war,” but warned it can’t immediately stop imports.
Muto explained that this is because replacing Russian supply could take time and come with a side of financial crisis for Japan, as the Asian LNG market remains tight and that rising procurement costs could drive up electricity prices for homes and industries.
Muto didn’t offer a timeline or specific details on when shipments could end, but did say that gas from Russia’s Sakhalin‑2 project currently supplies about 10% of Japan’s total LNG imports, describing it as an important lifeline for the country’s power sector.
Japan’s trading houses own a stake in the Russian Sakhalin-2 plant, the closest LNG export terminal to the country. Furthermore, much of the fuel bought from the project is supplied under long-term purchase agreements, some of which don’t expire until the 2030s.
Japan is the only G7 country without a set deadline to end Russian gas purchases. Muto pointed out that Japan’s strategy focuses on reducing exposure without risking blackouts or price spikes.
Washington presses Tokyo to halt Russian energy imports
The comments came just as the United States ramped up efforts to cut off Russia’s energy revenue streams. Treasury Secretary Scott Bessent told Finance Minister Katsunobu Kato during talks in Washington last week that the Trump administration expects Japan to stop importing energy from Russia altogether.
The push is part of the White House’s broader strategy to choke Moscow’s war financing and isolate it from global trade partners.
At the same time, Senate Majority Leader John Thune told reporters on Monday that the U.S. Senate will delay voting on new sanctions legislation targeting Russia until after President Donald Trump’s planned meeting with Vladimir Putin. “At the moment we’re kind of hitting the pause button,” Thune said.
The proposed bill would allow Trump to impose tariffs of up to 500% on imports from countries that continue buying Russian energy while not providing active support to Ukraine, a list that includes China, India, and Japan.
Thune previously said the Senate would hold a vote within about 30 days, but the bill has stalled for months despite backing from 85 senators. Trump has yet to give the green light, saying he wants to wait for his one‑on‑one with Putin before locking in new penalties.
Meanwhile, oil prices slipped for the second straight day on Tuesday as traders grew nervous about weak demand and a looming supply surplus. Brent crude futures fell 17 cents, or 0.28%, to $60.84 per barrel at 0343 GMT, while U.S. West Texas Intermediate (WTI) for November delivery dropped 0.52% to $57.22.
The more active December contract slid 0.33% to $56.83. Prices reached their lowest since early May after rising concerns that the U.S.–China trade dispute could hurt global growth and reduce oil consumption.
Both Brent and WTI have moved into contango, a market condition where near‑term prices are cheaper than future contracts, suggesting ample supply and softening demand.
Analysts said the decline reflects both economic tensions between Washington and Beijing and the ongoing production policy of OPEC+, the alliance of oil‑producing countries led by Saudi Arabia and Russia, according to Reuters.
Despite weakening prices, OPEC+ is still pushing ahead with its plan to add more oil to the market, a decision that could extend the global glut through next year. Analysts expect the oversupply to grow, and the International Energy Agency last week projected a surplus of nearly 4 million barrels per day by 2026.
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Source: https://www.cryptopolitan.com/japan-is-reducing-dependence-on-russian-lng/
