Japan's Taiyo Oil buys cargo of crude from Russia's Sakhalin-2 project
The Facts
- Taiyo Oil purchased a cargo of crude oil from Russia's Sakhalin-2 project.
- Taiyo Oil is a Japanese refiner, and reports describe it as Japan's fourth-largest oil refiner.
- The purchase was presented as part of efforts to diversify Japan's oil supply away from the Middle East.
- Reports say Japan's Agency for Natural Resources and Energy was involved in prompting or coordinating the purchase.
- Taiyo Oil said the Sakhalin Blend purchase does not fall under current sanctions restrictions cited in the reports.
- The cargo is bound for Japan's Ehime Prefecture, and vessel-tracking reports identified the tanker as the Oman-flagged Voyager.
- Japan had largely suspended purchases of Russian oil after Russia's 2022 invasion of Ukraine, making this cargo a notable exception tied to Sakhalin-2.
- Taiyo Oil said no decision had been made on future purchases of Sakhalin Blend, leaving open whether this will remain a one-off transaction.
Context
Why is Japan turning to Russian oil now?
The reports say Japan is seeking alternative crude supplies because imports from the Gulf have been disrupted, and officials and the company linked the Taiyo purchase to efforts to diversify away from heavy reliance on the Middle East Reuters,毎日新聞,Економічна ….
Why do the reports say this purchase is allowed despite sanctions on Russia?
Several sources say the cargo is from the Sakhalin-2 project and that this oil is exempt from, or not covered by, the sanctions restrictions cited in the reports; Reuters also noted a U.S. exemption for Sakhalin-2 oil sales running until June 18 Коммерсант.…,Reuters,Japan Times.
Is this the start of regular Japanese purchases of Russian oil again?
That is not clear. Taiyo Oil said no decision had been made on future Sakhalin Blend purchases, and some reports described the deal as a spot or one-off purchase Коммерсант.…,CNA,Notícias ao Minuto.
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