Japan Breaks with U.S. Allies, Buys Russian Oil Above $60-a-Barrel Cap

Over the last week, Brazil and China announced that they will no longer be trading in U.S. dollars, but rather using their own currency instead.

Saudi Arabia, Russia, and Iran have since followed suit. This means serious trouble for the United States, as this will cause our dollar to collapse and our economy to go into hyperinflation.

As if that wasn’t bad enough, Japan has decided to also break with U.S. allies and start purchasing crude oil from Russia instead.

Japan has almost no fossil fuels of their own and therefore rely heavily on imports for energy needs. Due to that dependency, they were hesitant to back Ukraine amid the war with Russia. In fact, they are the only Group of Seven (G7) members to not supply Ukraine with any lethal weapons.

Now we know why.

Fox Business reports:

As many European nations weaned themselves off Russian oil in response to the invasion of Ukraine, Japan stepped up its purchase of Russian natural gas.

Despite the concession, Russian natural-gas imports to Japan are relatively small, accounting for around one-tenth of Japan’s supply and a fraction of Russia’s output, the Wall Journal reports. Most of what Russia exports to Japan comes from the Sakhalin-2 project in Russia’s Far East.

The G7 nations and Australia agreed to a $60 per barrel price cap on Russian seaborne crude oil to reduce Russia’s income from selling oil while preventing a spike in global oil prices.

The price cap allowed non-EU countries to continue importing Russian crude oil but prohibited shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price cap.

The nations granted an exception to the $60-a-barrel cap through September for oil purchased by Japan. And in the first two months of this year, Japan bought around 748,000 barrels of Russian oil for approximately $70 a barrel.

So not only are they buying from Russia, they are buying above the cap.

The United States is in for some serious economic turmoil, and our pilot has dementia. Buckle up, folks.


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