Japanese oil refiner Taiyo Oil announced on May 1 that it has resumed purchasing oil from Russia, viewing it as a viable alternative to Middle Eastern supplies. This decision marks a significant shift in sourcing strategy for the company, which is the fourth-largest oil refiner in Japan.
The company has made a spot purchase of oil from the Sakhalin-2 project located in the Russian Far East. According to reports, this initiative was prompted by Japan’s Agency for Natural Resources and Energy.
Taiyo Oil stated that these purchases do not fall under the scope of international sanctions, allowing for transportation without associated risks. A tanker named Voyager, registered in Oman, has already departed from the southern Sakhalin area and is expected to arrive in Ehime Prefecture, Japan, on May 3.
However, it is noteworthy that the Voyager is currently under U.S. sanctions. Despite this, Taiyo Oil maintains that the transaction is legally secure.
Prior to the conflicts involving the U.S. and Israel against Iran, Japan relied on Middle Eastern oil for approximately 95% of its energy needs. In light of new geopolitical risks, Tokyo is actively seeking alternative routes and sources for its oil supply.
On April 30, oil prices for Brent crude surged to a four-year high due to concerns that renewed hostilities could lead to further disruptions in energy supplies.
Taiyo Oil has resumed oil purchases from Russia, citing the need for alternative sources amid rising geopolitical tensions. The company asserts that these transactions comply with international regulations, despite the sanctions on the tanker involved.