Japan begins applying cap on the price of Russian oil

The Japanese government said that it started applying the cap on the price of Russian crude oil starting today, Monday, but made it clear that crude oil imported from the Sakhalin-2 plant in Russia will be excluded.

According to Reuters, the decision follows an agreement between the Group of Seven countries and Australia on Friday to cap the price of Russian crude oil at $60 a barrel, in the latest move to impose sanctions on Moscow over its war in Ukraine.

The government said in a statement that the exclusion of crude oil from the Sakhalin-2 project in far east Russia, in which Japanese energy companies have stakes after Shell’s exit, was decided “in light of Japan’s energy security.”

The statement added that further measures regarding Russian petroleum products will be announced at a later time, which is scheduled to be implemented on February 5, 2023.