Japan has promised $10 billion (£7.4 billion) to assist its Asian neighbours, particularly those in South East Asia, in securing energy, notably crude oil, as the region suffers from disruptions caused by the Iran war.
Japanese Prime Minister Sanae Takaichi unveiled the new cooperation framework on Wednesday, following an online conference with other Asian leaders. Takaichi highlighted Japan’s reliance on South East Asia for petroleum-derived items, particularly medical equipment, during a press event on Wednesday.”Japan is closely interconnected with each Asian country through supply chains and is mutually dependent,” she stated.
Japan’s cooperation framework intends to assist Asian countries in obtaining crude oil and petroleum products, as well as sustaining supply lines and expanding stocks. Asia is particularly vulnerable to energy supply interruptions caused by blockades in the Strait of Hormuz, as roughly 90% of the oil and gas moving through the crucial waterway is intended for the area.
Japan’s foreign ministry stated that the $10 billion in financial aid was nearly comparable to a year’s worth of crude oil imports by ASEAN countries. The plan was embraced by leaders at the meeting, including those from the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh, and South Korea, and finance for the project would come from a variety of sources.
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