Japan Reduces Russian LNG Imports Amid Geopolitical Tensions

Japan is gradually cutting its liquefied natural gas (LNG) imports from Russia as geopolitical pressures intensify. Industry Minister Muto highlighted the challenges of replacing Russian supply, citing tight Asian LNG markets and potential financial strain. Rising procurement costs could lead to higher electricity prices for households and industries.

The Sakhalin-2 project currently supplies about 10% of Japan's LNG imports, serving as a critical energy lifeline. Japanese trading houses hold stakes in the Russian plant, with long-term purchase agreements extending into the 2030s. Unlike other G7 nations, Japan has not set a deadline to halt Russian gas purchases, opting instead for a cautious approach to avoid blackouts or price volatility.

Washington is increasing pressure on Tokyo to sever energy ties with Moscow. During recent talks, U.S. Treasury Secretary Scott Bessent urged Japan to completely cease Russian energy imports. The WHITE House views this as part of a broader strategy to curb Moscow's revenue streams.