On Wednesday, information released by the country’s Finance Ministry, Japan resumed its purchases of Russian oil in July. Due to the sanctions related to Ukraine, imports of Russian crude fell to zero in June.
Despite not disclosing the exact volume, the oil ministry said July imports from Russia were 65.4% lower than last year. In July 2021, LNG imports from Russia decreased by 26.1%, while coal imports decreased by 40.1%.
The price of global commodities rose 45.1% despite the decline in physical volumes of Russian fuel exports to Japan last year.
Tokyo will gradually reduce its dependence on Russian energy resources, but can’t immediately stop buying Russian oil, Japanese Economy, Trade, and Industry Minister Koichi Hagiuda announced in May.
In addition, Japan endorses the G7’s proposal to cap the price of Russian oil. During the same period, the imports of oil from all countries to Japan increased by 3.8%. Japan consumes 90% of its oil from the Middle East, but due to its proximity, Russia is an important energy supplier.
According to MOF data, Russian crude imports in June were 242,575 kiloliters, or 49,218 barrels per day, compared to 514,843 barrels per day in June 2021, or 107,942 barrels per day. Russian coal imports in Japan dropped both on a month-to-month and year-to-year basis in June.