TOKYO: The US Treasury Department has extended an exemption allowing oil and gas exports from the Sakhalin 2 project in Russia’s Far East to Japan until December 18, according to media reports.
The United States tightened sanctions against Russia in response to Moscow’s 2022 invasion of Ukraine, but transactions related to Sakhalin 2 were exempted through June 18 this year.
Russian state-owned energy giant Gazprom owns a stake of over 70 percent in Sakhalin 2, while Japanese firms Mitsui & Co. and Mitsubishi Corp. hold 12.5 percent and 10 percent, respectively. Liquefied natural gas produced under the Sakhalin 2 project accounted for 8.9 percent of Japan’s total LNG imports in 2025.
Reports say transactions linked to Sakhalin-2 are mainly processed through Gazprombank. When sanctions disrupted these dealings, the Japanese government repeatedly requested exemptions, which were approved by the United States. The current waiver is valid for six months starting from December 2025.
In May, a tanker carrying crude oil from the project docked at a Japanese port for the first time since the security situation in the Middle East worsened.
The US, EU and all G7 members have implemented a full or partial ban on Russian oil sales into their countries, but US efforts to lean on other major importers to cut back Russian oil purchases have not been successful.
The EU remains the largest buyer of Russian LNG, accounting for almost half (49 percent) of Russia’s total LNG exports, followed by China (23 percent) and Japan (18 percent), according to the Center for Research on Energy and Clean Air.