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Tokyo Drops Russian Oil Price Limit as Part of Japan Expanded Sanctions Package
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
Japan has officially lowered its price cap on Russian crude oil from $60 to $47.60 per barrel, with the updated limit set to take effect this Friday. The move comes in alignment with the European Union’s July decision to reduce its own cap under the 18th round of sanctions against Russia, further tightening global restrictions following the country’s invasion of Ukraine in 2022.
According to Reuters on September 12, Chief Cabinet Secretary Yoshimasa Hayashi confirmed that the Japanese government will also introduce additional sanctions, including asset freezes and export controls targeting both Russian and third-country entities.
Despite the new price cap, Japanese officials have noted that the measure is expected to have minimal impact on the country’s oil procurement strategy. Since 2022, Japan has significantly reduced its reliance on Russian oil and pledged to phase out imports in coordination with other G7 nations. However, one critical exception remains: the Sakhalin Blend crude, a byproduct of LNG production from the Sakhalin-2 energy project, Reuters reported.
This crude oil is exempt from the price cap due to its strategic importance. The Sakhalin-2 project supplies around 9% of Japan’s liquefied natural gas, making it a key component of the country’s energy security framework. As a result, transactions related to Sakhalin Blend crude continue under special exemptions, even amid tighter international restrictions.
According to data from Japan’s Ministry of Finance, cited by Reuters, the country imported 95,299 kilolitres (approximately 599,413 barrels) of Russian crude oil between January and July 2025. This figure represents just 0.1% of Japan’s total crude oil imports, underscoring the limited role Russian oil now plays in the nation’s overall energy mix.
Earlier, India asked Moscow to widen its discount on Russian crude to $10 per barrel below the Brent benchmark, pointing to increased risks and transaction costs stemming from new Western sanctions.
