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Deputy PM Novak comments on Sakhalin oil bound for Japan amid price cap

Currently, Japan does not import oil from the Sakhalin-1 project, in which the Japanese consortium Sodeco participates

MOSCOW, December 6. /TASS/. Russia will have to deal separately with Japan's oil supplies from the Sakhalin projects given Tokyo’s support of the price cap, Russian Deputy Prime Minister Alexander Novak told reporters.

"I think there is a long-term contract with Japan. <…> With so many uncertainties and details, it is necessary to look into each separate case," he said when asked about oil supplies from Sakhalin projects to Japan.

Earlier, Tokyo joined the initiative to introduce a price cap on Russian oil, though the ceiling will not cover oil produced at the Sakhalin-2 project, according to the country’s foreign ministry. Such a decision was made due to national energy security, the ministry said in a statement. The US and the EU temporarily exempted oil from the Sakhalin-2 project from the anti-Russia sanctions at Tokyo’s request.

Currently, Japan does not import oil from the Sakhalin-1 project, in which the Japanese consortium Sodeco participates.

A Japanese official explained to TASS earlier that the Sakhalin-2 project provides for almost 9% of the country’s liquified natural gas consumption. Oil is also purchased in one package with LNG.

Novak said earlier that Moscow would not sell oil amid the price cap even if it was forced to cut production. It is unacceptable and contradicts the rules of the market and the World Trade Organization, he added.