Japan’s recent decision to buy Russian oil at above $60 a barrel, and India’s continuing purchases, underline some of the hard truths about energy security.
Russia’s war in Ukraine has sent the global oil markets into a tizzy. In the aftermath of the Russian invasion of Ukraine, Western nations put a $60 cap/barrel on Russian oil imports. In the meantime, they are trying to delink themselves as much as possible from Russian energy imports.
However, this is easier said than done. For example, there is Japan’s recent decision to buy Russian oil at above $60 a barrel. The decision marks a break with its Western allies. At the same time, it also underlines some hard truths about Japan’s energy security.
Why is Japan Buying Russian Oil?
For one, Japan’s reliance on nuclear power has declined sharply in the aftermath of the Great East Japan Earthquake and the Fukushima nuclear disaster of March 2011. As a result, a question mark still hangs over Japan’s energy security. This is especially true in the light of the Western sanctions on energy-supplying countries like Russia and earlier in the case of Iran.
Second, this also means that Japan is caught between the devil and the deep blue sea. For example, PM Fumio Kishida recently visited Ukraine. At the same time, however, Japan is the only G7 country not to have supplied lethal weapons to Ukraine. (This is because of restrictions imposed by Japan’s post World War II constitution.)
It is worth noting here that Japan is also the chair of the G7 this year and the G7 leaders’ summit is going to be held in Hiroshima later this spring.
Third, this means that the United States and other partners are willing to make an exception for countries like Japan. This is even though it has been a very strong part of the Western-led alliance since the end of World War II.
Russian President Vladimir Putin speaks to Indian Prime Minister Narendra Modi on the sidelines of the Shanghai Cooperation Organisation (SCO) summit. Uzbekistan in September 2022.
Russian Oil for India
At the same time, India has also been buying Russian oil in huge amounts. And any disruption in its oil imports could put significant inflationary pressure on the Indian economy.
In addition, Russia is India’s biggest weapons supplier. And any gaps in the supply lines could spell doom for India’s national security. At a time, when India is facing threats from China and Pakistan, this is a threat that India simply cannot afford to ignore.
In addition, Pakistan has been trying to get close to Russia. On the day of the Russian invasion of Ukraine, the former Pakistani PM, Imran Khan, was in Moscow.
Oil from Russia accounted for around 40 per cent of India’s total crude oil imports in February 2023. This made Russia India’s largest supplier of crude for the fourth straight month.
Moscow is offering discounts on its oil, which has helped Indian refiners shore up their finances.