On Monday, the Japanese government announced the start of applying the price ceiling for Russian oil, with the exception of crude imported from the Sakhalin-2 plant in Russia.
The decision follows an agreement between the Group of Seven nations and Australia, on Friday, to cap the price of Russian crude oil at $60 a barrel.
The government said, in a statement, that the exclusion of crude oil from the Sakhalin-2 project in far eastern Russia, in which Japanese energy companies have stakes after Shell’s exit, was decided “in light of Japan’s energy security,” according to the local Nikkei.
The move to set a price ceiling for Russian oil aims to harm Moscow’s revenues from exports and sales of crude oil, as the Russian war against Ukraine approaches a new year.
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The agreement comes into effect on Monday, when the European Union begins cutting off crude supplies from Russia by sea.
Under the agreement, the Russian oil price ceiling is set at a level that is at least 5 percent lower than the market price of crude oil, and the G7 countries will prevent their shipping companies from facilitating Russian oil shipments if they are sold for more than $60 a barrel.
