Japan's PM Takaichi rejects U.S. call to ban Russian energy imports

Reuters reported the information, citing sources.

According to the sources, the issue of Russian LNG was raised during a bilateral meeting of the leaders on Tuesday, and Takaichi asked Trump to show understanding regarding Japan's energy needs.

As noted by Reuters, Russian supplies account for almost 9% of Japan's total LNG imports, and Japanese companies Mitsui and Mitsubishi have stakes in the Sakhalin-2 LNG project in Russia's Far East.

Ahead of Trump's trip to Asia this week, the U.S. urged buyers of Russian energy resources, including Japan, to halt imports and impose sanctions on Russia's two largest oil exporters, Rosneft and Lukoil, to increase pressure on Moscow to end the war against Ukraine.

According to the business publication Nikkei, Takaichi told Trump that if Japan were to stop its purchases, it would only please China and Russia.

Reuters adds that China and India remain the largest buyers of Russian energy resources, although many Indian oil refineries have suspended new orders for Russian oil after the introduction of new U.S. sanctions last week. They are awaiting clarification from the government and suppliers.

Japan has increased its purchases of LNG from the U.S. in recent years in an effort to diversify supplies from its main provider, Australia, and in preparation for the expiration of supply contracts with the Sakhalin-2 project in Russia, the article states.

Most of the gas supply contracts from the Sakhalin-2 project are set to expire between 2028 and 2033. Replacing this volume of gas will be expensive and will lead to an increase in electricity prices, Japan's Minister of Industry stated last week.

Reuters noted that Japan imports less than 1% of its oil from Russia, using an existing sanctions exemption that expires in December. The country receives the main part of its oil from the Middle East.

• On October 28, U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework agreement aimed at strengthening the supply of rare earth materials.