Japan sets price cap on Russian crude oil, excluding Sakhalin-2

Japan implemented a price cap on Russian crude oil from Monday, but crude oil imported from the Sakhalin-2 plant will be excluded, the government said in a statement.

Japan implemented a price cap on Russian crude oil from Monday, but crude oil imported from the Sakhalin-2 plant will be excluded, the government said in a statement. The decision follows an agreement by the Group of Seven nations and Australia on Friday to limit the price of Russian crude oil at $60 per barrel in the latest move to slap sanctions on Moscow over its war in Ukraine.

The exclusion of crude oil from the far eastern Russian Sakhalin-2 project, which Japanese energy operators hold stakes in after the exit of Shell, was decided "in light of Japan's energy security", the government said in the statement. Further measures on Russian petroleum products, set to begin on Feb. 5, 2023, will be announced at a later date, the statement added.