Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:21-9:33 a.m.
Friday, June 12, 2026
In front of the Cabinet Room, 2nd Floor, National Diet Building

Opening Remarks

Support to small and medium-sized enterprises in the context of the situation in the Middle East

First, I would like to make a brief announcement. We will expand financing support to small and medium-sized enterprises (SMEs) and micro enterprises that are affected by the situation in the Middle East and rising crude oil prices. As the Prime Minister already announced, Credit Guarantee Corporations will provide the Safety Net Guarantee No.5 program, starting from Wednesday, July 1, and a total of 583 industries, which account for approximately half the national total, have been designated to be eligible for the program. Enterprises in the designated industries are applicable for an emergency credit guarantee up to JPY 280 million separately set in addition to the normal maximum limit of JPY 280 million. Prior to the launch of the program, Credit Guarantee Corporations began to receive requests for advance consultations from yesterday, Thursday, June 11, across the country. For details, please ask the administrative staff.

Question-and-Answer Session

Alternative crude oil procurement in response to the situation in the Middle East

Q: I would like to ask about alternative procurement of crude oil in response to the situation in the Middle East. Yesterday, at the Ministerial Meeting on the Situation in the Middle East, it was stated that in July alternative procurement is expected to make up for the shortage due to imports disrupted by the blockade of the Strait of Hormuz and secure 100% of the actual volume a year earlier. This represents a significant milestone by securing the quantity equivalent to, despite differences in quality, the level before the end of last February, when the United States and Israel launched strikes against Iran. Could you please share your thoughts on this achievement? Also, given that procurement is expected to return to 100%, could you advise whether this will affect your plans for alternative procurement going forward?

A: First, I would like to express my deepest appreciation to all those concerned for their huge efforts. Although there are certain points that need to be taken into account, it is indeed significant that we have succeeded in alternative crude oil procurement for the volume to make up for the shortage caused by the substantial blockade of the Strait of Hormuz, through which pass in normal times tankers carrying around 93% of the entire crude oil imported by Japan. Alternative crude oil procurement is progressing steadily to expand imports from the United States, including the arrival of a delivery from Alaska last week, and achieving an estimated volume for July of more than ten times the level of the previous year. Thus, it can be said that we see our way to restoring procurement to 100% on a year-on-year basis. However, it should be noted that this is on a monthly basis, and that not all purchases are based on concluded long-term agreements; in some cases, spot contracts have been signed. Therefore, we need to continue to make steady efforts going forward. Once again, I would like to extend my sincere gratitude to those concerned for working hard to achieve this. As we anticipate securing the necessary supply for July, we have decided, just as we did last month, against a third national stockpile release in June. Under these circumstances, even assuming a conservative scenario in which we maintain a 75%, rather than 100%, year-on-year restoration rate from August onward, we expect to be able to ensure a stable supply of oil for the period until the end of March 2028, or within fiscal 2027, about one year ahead of the previous assumption, by using the stockpiles as appropriate. Going forward, the government will promote resource diplomacy proactively by exploring all possible options to secure the necessary supply volumes and pursue further diversification of crude oil procurement, while cooperating with private enterprises. Needless to say, and as I mentioned earlier, we have secured the amount needed for Japan as a whole. In fact, however, we are aware of a lot of calls for more as well as short supplies due to uneven and bottlenecked distribution, and we will step up our efforts to solve these issues one by one.

EPA with MERCOSUR

Q: Some media have reported that the government will soon start negotiations with the South American trade block MERCOSUR, aiming to conclude an economic partnership agreement (EPA), principally in response to demand from economic circles for the early realization of such a trade agreement. Could you please describe the views of the Ministry of Economy, Trade and Industry as the supervisory authority of the automotive industry on the significance of concluding an EPA with MERCOSUR and expectations for the agreement?

A: The two parties have been engaged in discussions to strengthen economic relationships within the Strategic Partnership Framework between Japan and MERCOSUR. This has a significant implication primarily for diversifying suppliers of critical minerals including rare earths, petroleum, and other resources as well as bolstering economic security. I have one more thing to say in this context: Prime Minister Takaichi has spoken of “restoring Japanese diplomacy that flourishes on the world’s center stage,” and I believe we are indeed generating significant momentum in that direction. To put it shortly based on what I am working on at present, many governments around the world have begun to emulate Japan’s models to address challenges posed by the ongoing situation in the Middle East or coercive economic pressures applied by certain countries. Specifically, Southeast Asian countries are beginning to create crude oil stockpiling systems following the Japanese example, while the United States, European nations and other developed countries are looking at the Japan Organization for Metals and Energy Security (JOGMEC) to prepare appropriate critical minerals stockpiling systems.

In addition, at the upcoming G7 summit, Prime Minister Takaichi is expected to underscore her intention to further pursue the Free and Open Indo-Pacific (FOIP) initiated by the late former Prime Minister Abe as part of her broader set of initiatives, and I think the MERCOSUR talk will constitute an important element within that framework. Regarding planned EPA talks with MERCOSUR, we will move forward carefully in consideration with Japan’s past policies and various domestic opinions.

Rapidus to sign MoU with British and Italian public institutions

Q: I have a question about Rapidus Corporation. The company has decided to sign an MoU with British and Italian public institutions to strengthen cooperation in research and development. Would you explain your thoughts on what kind of benefits will be brought to Rapidus by promoting these projects?

A: Yesterday, on Thursday, June 11, representatives of Rapidus paid a courtesy call on Prime Minister Takaichi and reported on its decision to sign an MoU with the UK Semiconductor Centre and Italy’s Chips-IT, as I understand. I believe the planned MoUs will help encourage collaborations with business corporations and research institutes in the two countries, providing opportunities for Rapidus to find new customers. We will continue with all-out efforts to ensure the success of the Rapidus project, which is one of the government’s key growth investment targets.