*Note: This is a provisional translation for reference purposes only.
Friday, November 25, 2022
In front of the Cabinet Room, 2nd floor,
National Diet Building
Visit to Osaka and Aichi Prefectures
I would like begin by saying one thing.
I will visit Osaka and Aichi Prefectures from tomorrow, the 26th, to the 27th.
First, I will visit facilities conducting R&D on technologies for methanation, the process of synthesizing methane from hydrogen and CO2. Then, I will visit the venue for Expo 2025 Osaka, Kansai, where I will see how preparations are progressing and exchange views with Governor Yoshimura and Mr. Matsui, the Mayor of Osaka City. I will also exchange views with Mr. Nagafumi, the Mayor of Sakai City.
The next day, I will go to Nagoya in Aichi Prefecture, where I will exchange views with members of the Chubu region's business community. After that, I will visit plants in Kiyosu City and Kitanagoya City operated by companies in the defense industry for manufacturing rifles for the Self-Defense Forces and windshields and other parts for defense aircraft.
Russian Crude Oil
Q: The US Department of the Treasury has announced its operating policy of implementing an additional sanction that will set a price cap on Russian crude oil. Meanwhile, exports of crude oil from Sakhalin-2 to Japan will be exempted until the end of September next year. Please tell us your thoughts on this decision, including your view on the reasons behind the decision. Also, please tell us if the Japanese government is planning to exempt Sakhalin-1 and -2 from the sanction.
A: Preparations are being made to implement the price cap on Russian crude oil from December 5. After it comes into effect, providing services related to imports and maritime transport will be prohibited for Russian crude oil—including from Sakhalin-1—purchased at prices above the price cap.
Regarding Sakhalin-2, stable offtake of crude oil associated with LNG production is necessary from the viewpoint of continuing stable operations of the project. Japan plans to exempt Sakhalin-2, and we have explained our position to the rest of the G7. Sakhalin-2 is also exempted by the systems in the US and EU. Japan plans to make necessary revisions to its systems in the future.