Japan will take all possible measures to prevent disruptions in securing a stable supply of liquefied natural gas from Russia’s Sakhalin-2 project following new U.S. sanctions, Japan Industry Minister Yoji Muto said on Friday.
The United States imposed new sanctions on Russia’s Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
Gazprombank is one of Russia’s largest banks and is partially owned by Kremlin-owned gas company Gazprom GAZP.MM.
The sanctions, however, made exemptions for transactions related to the Sakhalin-2 oil and gas project in Russia’s far east until June 28, 2025, according to an updated general license published by the treasury department.
“The Sakhalin-2 is important for Japan’s energy security,” Muto told a news conference on Friday, noting there is no immediate disruption as transactions through Gazprombank with Sakhlin-2 or Sakhalin Energy are excluded from the sanction.
“We will continue to provide detailed explanations to the U.S. and other G7 members as we have in the past, and take all possible measures to ensure that there are no obstacles to securing a stable supply for Japan,” he said.
Separately, the president of Osaka Gas 9532.T, a buyer of Sakhalin 2 LNG, said the new U.S. sanctions will not affect its settlement process for procuring the fuel.
Japan’s second-biggest city gas provider, which buys the super-chilled fuel from the Sakhalin-2 under a long-term contract, does not expect the U.S. sanctions to affect its transactions, Osaka Gas President Masataka Fujiwara told reporters on Friday, noting the utility does not use Gazprombank for settlement.
Source: Reuters reported by Yuka Obayashi and edited by Rashmi Aich and Janane Venkatraman
