Japan plans US$10 billion support to help Asia secure oil: ‘we are mutually dependent’
Prime Minister Sanae Takaichi says the support will be equivalent to as much as 1.2 billion barrels of oil
Japan has said it will establish a financial framework worth about US$10 billion to help Asian countries procure energy resources and bolster their stockpiles as Middle East tensions drive prices higher and disrupt supply chains.
The support, aimed at preventing knock-on effects on Japan’s own supply chains, would be channelled mainly through state-backed financial institutions such as Japan Bank for International Cooperation and Nippon Export and Investment Insurance.
Announcing the plan on Wednesday, Prime Minister Sanae Takaichi said the support would be equivalent to as much as 1.2 billion barrels of oil, or about one year’s worth of crude oil imports by the Association of Southeast Asian Nations. She was speaking after a meeting of the “AZEC Plus” under the Japan-led initiative, Asia Zero-Emission Community (AZEC).
Leaders of the Philippines, Malaysia, Singapore, Thailand and Vietnam attended the meeting, among others.
“We are closely interconnected with Asian countries through supply chains and other channels, and we are mutually dependent,” Takaichi told reporters after the talks, citing examples such as dialysis equipment and surgical drains.
“Supporting Asian countries’ supply chains would in turn bolster Japan’s own economy.”