US allowed Japan to buy Russian oil at a price above the ceiling

Japan is purchasing oil from Russia at a price above the ceiling set by the G7, with the consent of the United States and partners, US First Deputy Energy Secretary David Turk said.

“There were certain arrangements built into the price ceiling discussions, as well as other further efforts of this kind, to ensure that the Japanese can take care of their own energy security, that they will have certain favorable opportunities of this kind,” said Turk (quote according to TASS).

According to him, Japan’s actions do not represent a departure from the agreements of the collective West. “These discussions were conducted with our Japanese colleagues in good faith, with an attempt to take into account their own needs in the field of energy security,” he concluded.

The European Commission (EC) has informed the EU countries that the price ceiling for Russian oil will not be revised yet. This was written by Bloomberg on March 31, citing sources. Now it is set at $60/bbl.

The European Union announced an embargo on offshore oil supplies from Russia on December 5, 2022. Prior to this fall, the decision to limit the price of oil (introduce a price ceiling) from Russia was made by the G7 countries (the UK, Germany, Italy, Canada, the USA, France, Japan ), joined by the rest of the EU, Australia and some non-EU countries in Europe.

In response to the price ceiling, Russian President Vladimir Putin banned the supply of Russian oil and petroleum products to foreign companies and individuals if the contracts directly or indirectly provide for a price cap mechanism. According to the decree, the measure is applied at all stages of deliveries to the final buyer. The ban came into force on February 1, 2023; for oil products, the date will be additionally determined by the Russian government.