Japan's efforts toward the stabilization of the energy market in response to the situation in Ukraine
On February 21, Russia signed a Presidential Decree recognizing the "independence" of the "Donetsk People's Republic" and the "Luhansk People's Republic", as well as the "Treaty on Friendship, Cooperation and Mutual Assistance" granting the Russian Armed Force the right to build and use military bases and others. On February 22, Russia proceeded with a series of measures such as the ratification of the treaties with the two “Republics” and the decision by the Russian Federation council regarding the use of military forces outside of its territory.
Such actions clearly constitute an infringement of the Ukraine's sovereignty and territorial integrity and are in violation of international law. They are totally unacceptable and Japan strongly condemns them once again. The government of Japan strongly urges Russia to return to its efforts to resolve the situation through a diplomatic process.
In response to the severe gas supply situation in Europe following the increasingly tense situation in Ukraine, Japan has been diverting surplus LNG handled by Japanese corporations to Europe from the standpoint of demonstrating solidarity with allies and like-minded countries that share the fundamental values.
With this current situation, the oil price is in a further upward trend. Stabilization of the oil market is crucial for the stability of the global and Japanese economies. The Government of Japan will urge the oil-producing countries to stabilize the oil market and cooperate with the International Energy Agency (IEA) and other relevant international organizations and major oil-consuming countries. Furthermore, the current global oil supply has not been cut off by the increasing tension in Ukraine, and the economic sanctions against Russia will not impede the energy supply and demand.
Japan is currently holding approximately 240 days' worth of oil reserves, including both national and private reserves. In addition, electric power companies and gas companies have sufficient LNG reserves to meet their needs for two to three weeks. We believe that there is no concern that this situation will immediately cause a major disruption to the stable supply of energy in Japan. Japan will continue to make its utmost efforts to stabilize the international energy market in cooperation with relevant countries and international organizations.