Japan may take more action in response to the Russian invasion of Ukraine, which could have a significant impact on Japan’s energy sector, a senior ruling party lawmaker said Sunday, calling for a complete cessation of oil and natural gas use. gas from Russia, according to Bloomberg.
Sanctions against Moscow – such as the seizure of assets, the ban on exports of high-tech goods and the exclusion of some Russian banks from the international SWIFT payment network – have a major impact, said Hiroshige Seko, general secretary of the Liberal Parliament.
“What is important above all is to let Russia change its attitude,” Seko said. “There is a possibility that we will impose further sanctions, which could have an impact on the energy sector through financial institutions involved in transactions.”
“Sanctions could have a major impact on the (Japanese) people’s livelihoods, so we should seek their understanding for the sake of solidarity with Ukraine,” Seko told a political talk show on the public broadcaster NHK.
Russia’s invasion of Ukraine a week ago has led to a number of large companies ceasing operations in Russia.
Russia describes its actions in Ukraine as a “special operation”.
The Japanese government and companies have stakes in oil and liquefied natural gas (LNG) projects in Russia, including two on Sakhalin Island, of which Exxon Mobil Corp. XOM.N and Shell PLC SHEL.L have announced they will leave.
“If we leave the Sakhalin 1 and 2 projects, supply (oil and gas) will be disrupted while countries like China desperate for LNG would get it cheap,” Seko said, given the cost incurred by Japan for the development of projects. “We have to look at it realistically.”
Japan decided on Thursday to freeze the assets of four Russian banks from April 2, bringing to seven the total number imposed by Tokyo with such sanctions.
The government has frozen the assets of Russian oligarchs as well as Belarussian President Alexander Lukashenko, who has backed the Russian invasion. It also decided to ban exports to Belarus.
Source: Capital
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