The Japanese government said on Friday it would implement the release of oil from national reserves in cooperation with the International Energy Agency and other countries.
The move was in response to Russia’s attack on Ukraine, which has fuelled fears about disruption to global energy supplies.
Tokyo also plans to quickly implement further steps to help curb rising prices of fuels such as petrol and kerosene amid soaring oil prices, Industry minister Koichi Hagiuda told a news conference.
Consumer inflation in Japan’s capital accelerated in February at the fastest annual pace in more than two years, suggesting that soaring fuel and food costs will weigh on consumption and the country’s fragile economic recovery.
Analysts expect the crisis in Ukraine to further pace up inflation in coming months through a spike in global energy and commodity prices, adding to woes for Japan’s economy, which is heavy reliant on raw material imports.
Meanwhile, Japan will freeze assets in some Russian banks as part of sanctions against its action in Ukraine, Finance minister Shunichi Suzuki said on Friday.
Japan “strongly condemns” Russia’s action in Ukraine, Suzuki told reporters after a cabinet meeting.
- Reuters, with additional editing by George Russell
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