Taiyo Oil to receive oil from Russia

Japan's Taiyo Oil is set to receive a cargo of crude ​oil from Russia's Sakhalin-2 project, the Mainichi ‌daily reported on Saturday, citing Japan's Ministry of Economy, Trade and Industry.

Japan has largely suspended purchases of ​oil from Russia after Moscow's invasion of Ukraine ​in 2022. A U.S. exemption for oil ⁠sales from the Sakhalin-2 project, which largely ​produces the liquefied natural gas, runs until June 18.

The ​move comes as Japan seeks to secure alternative oil supplies after the U.S.-Israeli war with Iran has largely cut ​off imports from the Gulf, Tokyo's main ​oil source before the Middle East conflict broke out in ‌late ⁠February.

Russian state gas company Gazprom is a controlling shareholder in the Sakhalin-2 oil and gas project, in which Japanese trading houses Mitsui and Mitsubishi also hold ​stakes.

Mainichi, citing ⁠a METI official, said that cargo is set to arrive to ​the Ehime Prefecture in western Japan. Japan ​has ⁠also secured supplies from the U.S. and from destinations bypassing the largely closed Strait of Hormuz, among other ⁠sources.

Taiyo ​Oil and METI did not ​immediately reply to Reuters request for a comment.

-Reuters