Japan Warns of Economic Fallout from Potential Russian LNG Supply Shift
Japan faces significant economic challenges if forced to replace Russian LNG supplies from the Sakhalin-2 project, according to government officials. Industry Minister Ryosei Akazawa warned that alternative procurement would cause electricity prices to surge. The comments come amid U.S. pressure to reduce energy purchases from Russia.
Energy Security Concerns
Japan’s liquefied natural gas supplies from Russia’s Sakhalin-2 project play an “extremely important role” in the nation’s energy security, according to reports from the industry ministry. Industry Minister Ryosei Akazawa stated that replacing these supplies would be costly and would likely cause higher electricity prices for Japanese consumers.