tl;dr
Japan's Prime Minister Sanae Takaichi confirmed during a meeting with Donald Trump that Tokyo cannot stop purchasing Russian LNG due to energy security needs, highlighting tensions between U.S. sanctions and Japan's reliance on Russian energy. Russia supplies 9% of Japan's LNG, with projects like Sa...
**Japan's Prime Minister Takaichi Clarifies Stance on Russian LNG Imports Amid U.S. Pressure**
In a high-stakes bilateral meeting with former U.S. President Donald Trump in Tokyo, Japan’s new Prime Minister, Sanae Takaichi, emphasized that Tokyo cannot halt its purchases of Russian liquefied natural gas (LNG), citing critical energy security concerns. The remarks, reported by two Japanese government officials, underscore the complex balancing act Japan faces between aligning with U.S. sanctions against Russia and safeguarding its domestic energy needs.
**Energy Dependence and Economic Realities**
Russia accounts for approximately 9% of Japan’s total LNG imports, with key Japanese firms like Mitsui and Mitsubishi holding stakes in the Sakhalin-2 LNG project in Russia’s Far East. Takaichi reportedly told Trump that cutting Russian LNG would be “difficult” due to Japan’s reliance on the resource for power generation and industrial use. A sudden halt to imports from Sakhalin-2 could force Japan to turn to more expensive alternatives, driving up energy costs at home.
The prime minister also warned that such a move would “only make China and Russia happy,” suggesting that restricting Russian energy supplies would merely redirect trade to other buyers like China and India. This statement highlights Japan’s concern that severing ties with Russia could inadvertently benefit its regional rivals, exacerbating geopolitical tensions.
**U.S. Sanctions and Japan’s Dilemma**
The U.S. has been pressuring allies, including Japan, to cut ties with Russian energy exports to isolate Moscow over its invasion of Ukraine. Washington has targeted major Russian firms like Rosneft and Lukoil, but Japan’s energy strategy remains cautious. While Tokyo has increased LNG imports from the U.S. to diversify its supply, it has not yet moved to ban Russian energy entirely.
Japan currently sources less than 1% of its crude oil from Russia, a figure allowed under a sanctions waiver that expires in December. However, the country’s broader energy infrastructure and geopolitical calculus complicate a full pivot away from Russian LNG. Industry officials have warned that replacing Sakhalin-2’s supply would be costly, potentially leading to higher electricity prices and economic strain.
**Global Diesel Market Shifts**
The tension extends beyond LNG. U.S. and EU sanctions on Russian diesel have disrupted global supply chains, prompting traders to scramble for alternative sources. The EU’s upcoming ban on Russian fuel imports in January 2026 closes a loophole that allowed refiners in India and Turkey to buy Russian crude, refine it, and export diesel to Europe.
Russia remains a major diesel exporter, supplying over 800,000 barrels per day this year—3% of global demand. Rosneft and Lukoil account for 39% of Russia’s diesel exports, with Turkey and Brazil as top buyers. As sanctions tighten, smaller importers and countries like China, which has a network to bypass Western restrictions, are expected to absorb surplus diesel, potentially flooding the shadow market with discounted fuel.
**Japan’s Strategic Balance**
Takaichi’s comments reflect Japan’s broader struggle to reconcile U.S. pressure with its own energy security. While the country has sought to reduce reliance on a single supplier, the immediate costs of transitioning away from Russian LNG remain prohibitive. Meanwhile, Japan’s industry minister recently warned that replacing Sakhalin-2’s gas could drive up electricity prices, a sensitive issue in a nation still recovering from the 2011 Fukushima disaster.
As global energy markets continue to shift, Japan’s approach underscores the delicate interplay between geopolitics, economic stability, and environmental goals. For now, Tokyo’s priority remains ensuring a stable energy supply, even as it navigates the fallout of a rapidly evolving international landscape.