Japan Releases Oil Reserves and Buys Russian Crude

The Government of Japan is implementing emergency energy measures following the closure of the Strait of Hormuz during the outbreak of the Iran war on February 28. Prime Minister Sanae Takaichi initially conducted diplomatic appeals with Iranian President Masoud Pezeshkian to ensure the safe passage of Japanese-related vessels, which facilitated the transit of the tanker Idemitsu Maru on April 30.

To stabilize domestic supplies, Japan initiated a second release of strategic oil reserves on May 1, providing 5.8 million kiloliters—roughly 20 days of consumption—from 10 storage bases, including the Shibushi National Petroleum Stockpiling Base. This follows an earlier 50-day release in March. Concurrently, the government authorized the first purchase of Russian oil since February 2022. A tanker carrying Sakhalin blend oil arrived at the coast of Imabari on May 4 or 5 for delivery to the Taiyo Oil refinery, utilizing a sanctions exemption for the Sakhalin-2 project.

Prime Minister Takaichi is shifting Japan's oil sourcing toward Central Asia, Latin America, and the Asia-Pacific region, aiming for 60% of May's crude needs to bypass the Hormuz Strait. She also coordinated with Australian Prime Minister Anthony Albanese to secure stable energy supplies, noting that the global supply squeeze is significantly impacting the region.