Why Japan withdrew Arctic LNG-2 and Sakhalin projects from sanctions

The Ministry of Finance of Japan will make an exception from anti-Russian sanctions for the Arctic LNG-2, Sakhalin-1 and Sakhalin-2 projects, according to the website of the ministry. We are talking about the provision of construction and engineering services to Russian companies. The exception that will allow such services to be provided will come into force on September 30, 2023. The department explains that such a step “was made to ensure the energy security of the country.” From September 30, Japanese companies will also be able to provide services related to exploration, production, liquefaction, storage, transportation, and transshipment of oil and gas for the listed Russian projects.

After the start of the NWO in Ukraine in February 2022, Japan joined the anti-Russian sanctions, which were supported, among other things, by the countries of the G7 (G7; in addition to Japan, it includes the UK, Germany, Italy, Canada, the USA and France). From December 5, the G7 introduced a ceiling on prices for Russian oil at $60 per barrel, and from February 5, also for oil products from Russia. The limit for more expensive oil products is $100/bbl, while for cheaper products it is $45/bbl. Other countries of the European Union (EU) have also joined the sanctions. The price ceiling prohibits companies from countries that have supported anti-Russian sanctions from transporting and insuring Russian oil at a shipping price above the ceiling. But Japan received an exception last year – it was allowed not to adhere to these agreements when importing oil from Sakhalin projects to the Russian Federation. On June 23, the EU extended such permission until April 2024.