Why Japan Will Struggle to Do Without Russian Energy

Japan’s stake in a big Russian energy project known as Sakhalin-2 is in limbo after President Vladimir Putin signed a decree to transfer the rights to a new Russian company. Resource-poor Japan depends on Russia for its natural gas needs, which is why Prime Minister Fumio Kishida has been reluctant to make a complete break with Moscow. While Japan is working frantically to secure alternative supplies, a global energy crunch means that it will be challenging for the island nation to quit Russian fuel.

Ever since the invasion of Ukraine in late February, Japan has joined the U.S. and European countries in sanctioning Russia. It has imposed export controls, including on semiconductors, and has sanctioned some oligarchs and their family members. Russia is barred from issuing government bonds in the country. Japan is also taking in Ukrainian refugees. After reports of alleged war crimes in Ukraine by Russian forces, Japan said in April it would follow the European Union and Group of Seven countries and ban imports of Russian coal. Kishida said the country will secure alternative sources of energy in a speedy manner, although no time frame was given.