7/2/22

Japan is the weakest G7 chain link

Putin has signed an important executive order to return Sakhalin-2 project to Russian jurisdiction.  This is an important move to demonstrate sovereignty and also punish Japan. The dependence of Japan on external energy sources is likely the highest among the G7 countries and the loss of cheaper natural gas from Sakhalin-2 will result in severe problems. The alternative is simply to lift the sanctions against Russia. With 40C temperature, the lack of energy may have catastrophic consequences for people and industry. Interesting prisoner's dilemma. I guess Japan is not a priority for the Japanese government. It is also important that Japan is the most hated country in the region with the Koreans, Chinese, etc. praising any trouble for Japan. 

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