Proposed Oil Price Cap to Oust Japan from Sakhalin-2: Ex-Russian PM

Politics Economy

Tokyo, July 5 (Jiji Press)--Former Russian Prime Minister Dmitry Medvedev said Tuesday Japan will be kicked out of the Sakhalin-2 oil and natural gas development project in the Russian Far East if a cap on the price of Russian oil is introduced as proposed by Japanese Prime Minister Fumio Kishida.

In a comment posted online, Medvedev also said Japan will become unable to gain oil and gas from Russia.

His remarks came after Kishida, during a stump speech in Tokyo on Sunday, revealed a plan to set an upper limit on the international community's purchase prices for Russian oil at around half of its current level in line with discussions with his Group of Seven counterparts.

Medvedev said such a measure would lead to significant declines in the amount of oil available in the market and sharply push up the price.

The same day, Russian Security Council Secretary Nikolay Patrushev, one of the closest aides to Russian President Vladimir Putin, said Japan is strengthening its revanchist stance over four northwestern Pacific islands at the center of the two nations' long-standing territorial dispute.

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Jiji Press