Taiyo Oil buys first Russian crude in more than two years on government request
TOKYO, June 10 (Reuters) - Japanese refinery Taiyo Oil has bought its first Sakhalin Blend crude from Russia in more than two years at the Japanese government's request, it said on Tuesday, to help ensure the stability of a plant also supplying Japan with liquefied natural gas.
Japan last imported Russian crude in February 2023, trade data showed, after Tokyo agreed with other G7 countries to phase out imports in response to Moscow's 2022 invasion of Ukraine.
China has since been the sole importer of Sakhalin Blend, but sanctions imposed by the former Biden administration in January on ice class tankers, used to lift oil from Sakhalin, have disrupted that trade, according to Kpler data and traders.
The Sakhalin Island complex, known as Sakhalin-2 and owned by Russia's Gazprom (GAZP.MM), opens new tab and Japanese companies, is vital to Japan's energy security as it accounts for 9% of its LNG imports.
Tokyo asked refiners earlier this year to consider buying Sakhalin Blend crude, a byproduct of LNG production, so the project can continue to operate smoothly.
The U.S. sanctions make exemptions for transactions related to Sakhalin-2 oil byproduct until June 28, 2025, provided it is imported only to Japan.
"At the request of the Ministry of Economy, Trade and Industry, we have decided to take delivery of 600,000 barrels of Sakhalin Blend crude oil," a Taiyo Oil spokesperson told Reuters by phone.
"This decision was made to help ensure a stable energy or LNG supply to Japan."
Aframax tanker Voyager, which is under U.S. sanctions, arrived at the Japanese port of Kikuma on Monday and left after discharging its cargo, LSEG shipping data showed.
An official of the industry ministry who deals with fuels confirmed the government's request to its refiners.
The Taiyo Oil spokesperson said there are no plans for additional Sakhalin-2 purchases at the moment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
33 minutes ago
- Reuters
Starbucks has received 'a lot of interest' for China business stake, CEO tells FT
June 11 (Reuters) - Starbucks has received "a lot of interest" in the sale of a stake in its China business, its chief executive told the Financial Times in an interview published on Wednesday, as the U.S. coffee chain looks to revive sales in its second-largest market. "The good news is we've got a lot of interest — a lot of interest," Starbucks CEO Brian Niccol told the FT. "People see the value of the Starbucks brand. They see the coffee category is growing. I think they'd love to be partnering up with us in figuring out how we take this from 8,000 to 20,000 (stores)." KKR & Co (KKR.N), opens new tab, Fountainvest Partners and PAG are among buyout firms interested in acquiring a stake in Starbucks' China business, Reuters reported in February.
Reuters
an hour ago
- Reuters
Nissan supplier Marelli files for Chapter 11, secures $1.1 billion in new financing
TOKYO, June 11 (Reuters) - Nissan (7201.T), opens new tab supplier Marelli Corp filed for Chapter 11 bankruptcy protection in the United States on Wednesday, the Japanese auto parts company said in a statement, after months of uncertainty about its talks with creditors. The maker of car interiors and lighting, which is owned by private equity firm KKR (KKR.N), opens new tab, said it had secured a commitment of $1.1 billion in financing from its lenders, and that around 80% of the lenders had signed an agreement to support its restructuring. "Throughout this process and moving forward, Marelli does not expect any operational impact from the Chapter 11 process," it said in a statement. It said 100% of its secured debt would also be eliminated. Marelli's situation has been closely watched given that it is a major supplier to Nissan which is struggling to turn itself around. Marelli said the lenders of the new $1.1 billion financing will take ownership of the business once it emerges from Chapter 11, subject to a 45-day so-called "overbid process" in which other parties could bid for it. The company listed both assets and liabilities in the range of $1 billion to $10 billion, according to a court filing. Kyodo News reported last week that Marelli was looking into Chapter 11 to ensure its operations would not be halted in the event that talks with creditors fell through. Marelli was created in 2019 from the merger of Magneti Marelli and Japan's Calsonic Kansei. Fiat Chrysler (FCA), now part of Stellantis ( opens new tab, sold Magneti Marelli to Calsonic Kansei, owned by KKR, for 5.8 billion euros ($6.6 billion). Marelli put forward a restructuring plan that included a buyout by India's Motherson Group, the Nikkei newspaper reported last month, adding that the proposal was unable to bridge the gap between Japanese and foreign creditors at the time.
Reuters
an hour ago
- Reuters
South Korea to revamp tax scheme to boost dividends as part of stock market reform
SEOUL, June 11 (Reuters) - South Korean President Lee Jae-myung said on Wednesday the government was preparing to revamp the country's tax system to boost dividend payouts, as part of a broader push to make the domestic stock market more attractive. "If it does not greatly hurt public finances, it will be better to lower (taxes) for more dividend income," Lee said during a visit to the Korea Exchange. Lee also ordered regulatory improvements to prevent unfair trading practices in the market and a "one-strike-out" system to penalize illegal trades, according to his spokesperson. One of Lee's major pledges during his election campaign was to implement various capital market reforms and resolve the so-called "Korea Discount", a tendency for South Korean companies to trade at a lower valuation than global peers due to low dividend payouts and opaque corporate governance. The day after Lee took office on June 4, his Democratic Party reintroduced legislation expanding the fiduciary duty of board members to protect shareholder interests and it plans to have the bill approved this month. The country's benchmark KOSPI stock index (.KS11), opens new tab has rallied since Lee's election victory last week on optimism around his "KOSPI 5,000" initiative aiming for the index to eventually reach 5,000 points. On Wednesday, it closed up 1.23% at 2,907.04, the highest level since January 14, 2022.
