(April 15): Japan will provide US$10 billion in financial support to nations in Southeast Asia to help them cope with soaring crude oil prices due to the war in the Middle East.
Japanese Prime Minister Sanae Takaichi announced the aid after the nation held a virtual meeting with regional leaders on Wednesday afternoon. She said in a news briefing that Japan relies on Asian nations to secure medical supplies like surgery gloves and equipment used for dialysis patients.
“Japan is closely linked to other Asian countries through supply chains and other means,” Takaichi told reporters. “Fuel shortages and supply-chain disruptions in Asia would hinder the procurement of these medical supplies from Asia to Japan, which would have a significant negative impact on Japan’s economy and society.”
Leaders who attended the gathering of the Asia Zero Emission Community Plus included Philippine President Ferdinand Marcos Jr, Malaysia’s Prime Minister Anwar Ibrahim and Vietnamese Prime Minister Le Minh Hung, Takaichi said.
At the gathering, Takaichi said she announced a partnership called Power Asia to strengthen the energy supply chain. The initiative aims to provide financing for emergency measures that include procurement of crude oil and petroleum products and supply chain maintenance. It also aims to expand crude oil stockpile days and diversify energy sources, she said.
Southeast Asian nations including Vietnam have previously sought help from Japan as well as from South Korea for crude oil supplies. Japan has tapped its strategic reserves in two tranches since the Iran war began in late February but has said its stockpiles are meant for domestic refiners and not for foreign nations.
See also: Norway’s crude exports hit record value as oil price soared
Japan itself isn’t facing an immediate oil shortage. The trade ministry said the country can secure sufficient crude supply for this year by tapping sourcing alternatives to the Strait of Hormuz, where transit remains constrained, and by drawing on its substantial oil reserves.
“The new partnership announced this time does not involve the transfer of Japan’s strategic crude oil reserves and there will be absolutely no adverse impact on domestic supply and demand,” Takaichi said.
Uploaded by Arion Yeow
