Japan Will Ban Russian Coal Imports, Prime Minister Says

(Bloomberg) -- Japan will ban imports of Russian coal, said Prime Minister Fumio Kishida, adding to pressure on Moscow after the European Union announced its own embargo on the fuel.

“There needs to be accountability for such inhumane acts,” Kishida told reporters in Tokyo on Friday, saying be believes Russia has committed war crimes in its invasion of Ukraine. “We will ban the imports of Russian coal,” he said in announcing new economic penalties on Russia, adding that in a speedy manner, Japan will secure alternative sources of energy.

The plan signals a policy reversal for Japan, which had previously drawn a line at cutting energy ties to Russia because of its heavy dependence on fuel imports. Kishida didn’t make clear the timeline for halting imports of coal, which make up about 13% of Japan’s power-generating supply.

The bold move by the Japanese government comes as pressure builds against Russia in response to reports that the country’s forces committed apparent war crimes in Ukraine. The EU agreed on Thursday to ban Russian coal imports, while the Group of Seven leaders issued a statement saying that the countries will ban new investment into Russia’s energy sector and expand trade restrictions, including phasing out and banning coal imports.

Kishida said Japan will also ban the imports of Russian goods such as vodka, and freeze the assets of about 550 Russian individuals and Sberbank of Russia PJSC and Alfa Bank PJSC. The government will also ban new investments in Russia.

The country has been reluctant to make a complete break with Russia. Prime Minister Fumio Kishida said last week that the country wouldn’t withdraw from the Sakhalin-1 offshore oil joint venture with Russia, or the Sakhalin-2 liquefied natural gas export project, citing Japan’s energy security needs.

Several power generators in Japan previously said they wouldn’t make additional spot or term purchases of Russian coal. Jera Co., Japan’s top power producer, has Russian coal as part of its portfolio but aims to secure supply from other countries going forward, according to a company spokesman. Kyushu Electric Power Co. suspended spot procurement of Russian coal, while Shikoku Electric Power Co. said it won’t import from the country for the time being.

(Updates with Kishida’s comments in the second paragraph.)

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