TOKYO, April 15 (Bernama-Kyodo) — Japan will provide a total of US$10 billion in financial support to other Asian nations to help them secure crude oil supplies, Prime Minister Sanae Takaichi said Wednesday, amid energy shipping disruptions caused by West Asia tensions, Kyodo News reported.
Takaichi told reporters after an online meeting with her counterparts from the Association of Southeast Asian Nations (ASEAN) and others that the planned financial aid is equivalent to up to 1.2 billion barrels — about one year of crude oil imports by ASEAN countries.
“Japan is closely interconnected with each Asian country through supply chains and mutually dependent with them,” Takaichi told reporters, adding that oil shortages or supply disruptions in Asia could have a “significant negative impact” on her nation’s economy and society.
Japan imports petroleum-derived products from Southeast Asia, including items used at medical facilities.
Many countries in the region maintain limited oil reserves, so there have been concerns that supply shortages could eventually affect shipments to Japan.
The surge in oil prices on the back of the war that led to a blockade of the Strait of Hormuz, a key waterway for global energy transportation, has raised concerns in some Southeast Asian countries over their ability to pay for imports.
Tokyo aims to address the risks through financial support, including loans via the government-backed Japan Bank for International Cooperation, according to government sources.
The Japanese prime minister emphasised that the latest supportive scheme does not include direct crude oil provisions from Japan’s reserves and therefore will not negatively affect domestic supplies.
Given its high dependence on West Asia for crude oil imports, Japan keeps abundant oil stockpiles in the country.
— NNN-BERNAMA-KYODO