Japan's Sakhalin-2 Oil Cap Exception Extended Until June 2024

Japan has been authorized by the US to keep importing Russian oil at a price above the 60$/bbl cap until 28 June 2024.

• The previous exception covering oil exported to Japan from the Sakhalin-2 project in Russia's Far East was scheduled to expire on 30 Sep.
• A US Treasury Department license dated 14 Sep authorized the extension.
• Japan imports a small amount of oil from Sakhalin-2 as well as larger volumes of natural gas which accounts for nearly 10% of Japan's total LNG imports under long-term contracts.
• Japanese government trade statistics show the country imported 6.9 billion yen worth of Russian oil in the first two months of this year but hasn't imported any since then.
• The exception granted to Japan affects only a tiny amount of oil and doesn't change the G7 cap effectiveness according to US officials.