Japan, New Zealand Lower Russian Oil Price Cap to $47.6 Amid New Sanctions

Japan and New Zealand have joined Canada, the European Union, and the United Kingdom in lowering the price cap on Russian crude oil from $60 to $47.60 per barrel as part of coordinated sanctions to pressure Russia over its invasion of Ukraine. Japan's new sanctions, effective from contracts signed after September 12 and shipments after October 17, also include asset freezes and export controls targeting Russian companies and affiliated entities in countries such as China, Türkiye, UAE, Seychelles, and the Marshall Islands. Despite these measures, Japan continues to import a small volume of Russian crude oil, mainly the Sakhalin Blend, which is exempt from the price cap due to its critical role in Japan's energy security, accounting for about 9% of its liquefied natural gas imports. Japanese officials emphasize that the sanctions are unlikely to significantly impact their overall oil procurement, as Russian oil imports constitute only about 0.1% of Japan's total. New Zealand has similarly expanded its sanctions regime and lowered the oil price cap to reduce funding for Russia’s military aggression. These actions form part of the international community's broader efforts to tighten economic pressure on Moscow amid ongoing conflict.