On Wednesday, the Kremlin chastised Japan for taking a “very unfriendly position” toward Russia, claiming that this inhibited the growth of commercial cooperation, notably in the energy sector.

Japan has joined its Western partners in imposing broad economic sanctions on Russia in response to its activities in Ukraine. Moscow has also been irritated by rumors that Japanese Prime Minister Fumio Kishida has advocated restricting Russian oil prices at approximately half their present levels.

“Japan is taking a very unfriendly position towards Russia. In any case, such an unfriendly stance does not help to facilitate relations on trade and the economy, including the energy dialogue,” Kremlin spokesman Dmitry Peskov told reporters.

“We discussed Mr Kishida’s proposal yesterday and have said that this is only an initiative announced, there were no consolidated decisions taken,” Peskov added. “It is doubtful whether such decisions could be taken, frankly speaking.”

In response to Kishida’s reported remarks, Russia’s former president Dmitry Medvedev warned on Tuesday that if the price ceiling suggestions were adopted, global oil prices may approach $300-$400 per barrel. more info

As a consequence, Medvedev said that Japan “would have neither oil nor gas from Russia, as well as no participation in the Sakhalin-2 LNG project” putting pressure on Mitsui & Co (8031.T) and Mitsubishi Corp shares (8058.T).

The notion of capping the purchase price of Russian oil was originally proposed by US Treasury Secretary Janet Yellen last month, and it was subsequently considered by the G7 countries, with the final agreement and size of the ceiling yet to be disclosed.

Source: Reuters

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