Japanese officials are looking for ways to circumvent restrictions on the sale of oil reserves, to curb prices after the request of the United States, writes Reuters with reference to sources in the government of the country.
Prime Minister Fumio Kisida made it clear that it is ready to take such measures after the circulation of Washington, but in Japan, which occupies the fourth place in the world for the procurement of oil, there are certain restrictions on reserves. We are talking about public and private reserves, which can usually be used only under the condition of the deficit. The government was thinking over the release of a part of reserves in the excess of the required minimum to find a workaround, remaining within the law. The same measures in relation to private reserves, according to some specialists, can be taken without restrictions, explains the agency’s interlocutor.
Japan has no choice, after the request from Washington, she will have to “come up with something”, indicates another source. “We would need to change the law, it will take time. However, according to some estimates, private reserves can be released,” says another source Reuters.
Japanese companies, including refineries, have approximately 175 million barrels of oil and petroleum products, such a volume should be enough for about 90 days. The reserves of petroleum companies have already been used several times, for example, after the 2011 earthquake, and the government has never been used.
On November 17, US President Joe Biden during the Virtual Summit with the Chairman of the People’s Republic of China, Jinspin asked China to use oil from its own reserves to reduce world prices. The administration of Biden turned to other major economies with a similar request. On November 20, the Kyodo News Agency reported that Japan could solve the sale of oil from reserves, but some politicians oppose such measures.