TOKYO, November 25. /TASS/. The decision by the United States and the European Union to exclude seaborne oil shipments to Japan under the Sakhalin-2 oil and gas project from the looming oil price cap is important in terms of keeping it afloat and continued LNG supplies to consumers in Japan, said Yasutoshi Nishimura, Japanese economy, trade and industry minister, at a news conference in Tokyo on Friday.

"Besides LNG, Sakhalin-2 also produces crude oil, and its export [of oil] is vital for continuing the stable operation [of the project] and energy supplies. We have shared our view with our partners in the G7. Both the United States and the European Union admitted that Sakhalin-2 will not be subject to the oil price cap policy," he said.

In late June, Russian President Vladimir Putin signed a decree replacing Sakhalin Energy with a Russian stock company as the operator of the Sakhalin-2 project. In late August, Japan’s Mitsui and Mitsubishi owning 12.5% and 10%, respectively, agreed to maintain participation in the project, whereas Shell holding a 27.5% stake said it would not participate in the new operator.

Japan imports 8.8% of its LNG from Russia, and almost all of that amount comes from Sakhalin-2.

Earlier this week, the US Department of the Treasury ruled to exempt operations related to the maritime transportation of oil produced under the Sakhalin-2 project and bound for Japan from facing the Russian oil price ceiling until September 30, 2023.

Oil price cap push

Under the looming Russian oil price cap set to take effect on December 5, US legal entities and individuals will be allowed to provide a number of services related to transactions with Russian crude only if the fuel is purchased at a price not exceeding the limit Washington and its G7 partners as well as the EU and Australia will roll out later. Those services include oil trading, financial operations, customs brokerage as well as oil shipments, insurance, compensation and ship registration.

President Putin warned earlier that Moscow would not export energy to those countries who would agree to the price cap.