Japan has long relied on Russian energy projects, particularly the Sakhalin-1 and Sakhalin-2 oil and gas projects off the island of Sakhalin, to bolster its energy security. Despite pressure to exit these projects following Russia's invasion of Ukraine, Japan has maintained its investments for two key reasons:
1. Japan's energy vulnerability: Japan has an extremely low primary energy self-sufficiency rate of only 11%, far lower than other G7 nations.[1] It relies heavily on imports for oil, gas, and other energy sources. Specifically:
- Japan imports around 90% of its crude oil from the Middle East, making Russia (3.6% share) the largest supplier outside that region. The Sakhalin-1 project is an important diversification source.[1]
- Japan imports 36% of its electricity generation from liquefied natural gas (LNG). While more diversified than oil, Russia accounts for 8.8% of Japan's LNG imports, much of it from the Sakhalin-2 project under long-term contracts.[1]
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