News On Japan

Russian Crude Arrives in Japan for First Time Since Iran Strike

TOKYO - A tanker carrying Russian crude oil arrived off the coast of Imabari in Ehime Prefecture on the morning of May 4th, marking the first such import since the United States launched an attack on Iran and reflecting a government-led effort to diversify energy procurement sources.

The cargo was produced as part of a natural gas development project in Russia’s Sakhalin region, in which Japan holds an investment stake, and was procured by Taiyo Oil, which said it had received a request from the Ministry of Economy, Trade and Industry to secure the supply.

The arrival underscores Tokyo’s strategy to reduce reliance on specific regions for crude oil amid heightened geopolitical tensions, particularly in the Middle East.

Due to strong winds, the tanker has yet to dock and is expected to berth on or after May 5th, after which the crude will be transported to a refinery and processed into petroleum products such as gasoline.

The arrival of Russian crude off Imabari on May 4th comes at a sensitive moment for Japan’s energy security, as rising geopolitical tensions following the recent U.S. strike on Iran have renewed concerns about supply disruptions in the Middle East, a region that typically accounts for more than 90% of Japan’s crude oil imports.

Japan has long relied heavily on the Persian Gulf, with key shipments passing through the Strait of Hormuz, making the country particularly vulnerable to instability in the region. Any threat to shipping lanes, even short-term, can quickly tighten supply and push up prices, prompting the government to seek alternative sources.

Against this backdrop, the latest cargo from Russia’s Sakhalin project highlights Tokyo’s ongoing effort to diversify procurement channels. The Sakhalin-1 and Sakhalin-2 energy projects, located in Russia’s Far East, have been strategically important to Japan for decades due to their geographic proximity and relatively stable logistics compared to Middle Eastern routes. Even after Russia’s invasion of Ukraine in 2022 led to sweeping Western sanctions, Japan chose to maintain its stakes in these projects, citing national energy security concerns.

The government’s involvement in this latest shipment—through a request to Taiyo Oil from the Ministry of Economy, Trade and Industry—suggests a more proactive stance in securing supply, particularly during periods of heightened risk. While Japan has gradually reduced its direct imports of Russian crude in line with G7 agreements, exemptions tied to the Sakhalin projects have allowed some flows to continue.

Refining capacity within Japan has also been under pressure in recent years, with several refineries shuttered or consolidated as domestic demand declined over the long term. However, recent global supply uncertainty has underscored the need to maintain flexibility in processing imported crude, especially when sourcing from non-traditional suppliers.

The timing of the shipment is notable, as energy markets have been closely watching the potential fallout from the Iran situation, including the risk of retaliatory actions that could disrupt tanker traffic. While no immediate disruption has been reported, the precautionary move to secure additional crude from Russia indicates that Japanese authorities are preparing for a range of scenarios.

Once docked, the crude is expected to be refined into gasoline and other petroleum products, contributing to domestic supply stability at a time when both global prices and logistical risks remain elevated.

Imports of Russian crude have historically accounted for only a small share of Japan’s total supply, but have played a strategic role in diversification, rising to around 3.6% to 4% of total imports in 2021—equivalent to roughly 80,000 to 100,000 barrels per day—before falling sharply following Russia’s invasion of Ukraine in 2022, when Japan joined G7 sanctions and reduced purchases to about 1% and then effectively to zero by 2023.

Shipments remained largely halted for more than two years, with only limited volumes linked to the Sakhalin energy projects—where Japan retains stakes—before imports resumed on a small scale in 2025, including a cargo of around 600,000 barrels, keeping Russia’s share well below 1% of Japan’s overall crude supply.

Despite the decline, the Sakhalin projects in Russia’s Far East have continued to hold strategic importance due to their proximity to Japan and shorter shipping routes compared with the Middle East, which still accounts for roughly 90% to 95% of Japan’s crude imports, leaving the country exposed to geopolitical risks in key transit points such as the Strait of Hormuz.

Source: テレ東BIZ

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