The United States has granted an extension on a waiver that permits oil sales from Russia’s Sakhalin-2 project until June 18 of next year. This decision is likely to keep liquefied natural gas (LNG) production from the project running smoothly.
The waiver, issued by the U.S. Treasury Department, is especially significant for Japan, which relies on Russia for about 9% of its LNG supply. This move serves as a temporary relief from sanctions that were imposed on the Sakhalin-2 project by President Joe Biden in 2022, following Russia’s invasion of Ukraine.
Japan, which imports around 70% of its energy, has communicated its energy security concerns to the U.S. and its allies in the Group of Seven. Chief Cabinet Secretary Minoru Kihara emphasized the importance of securing LNG from overseas, particularly from the Sakhalin-2 project. He assured that Japan will collaborate closely with the U.S. and the international community to maintain a stable LNG supply.
This extension comes amid ongoing pressures from the Trump administration for countries like China, India, and Japan to reduce their dependence on Russian oil and LNG. Additionally, the U.S. Treasury Department also extended a waiver for transactions involving Russian banks, like Gazprombank, linked to civil nuclear power, also lasting until June 18.
(Reported by Reuters)
