Energy security, Russia sanctions to be key topics as Biden meets with Italian, Asian leaders

Global energy security and options for tightening sanctions on Russian oil and gas will be key topics as Italy's prime minister visits the White House May 10 and ahead of US President Joe Biden's trip to Japan and South Korea later this month.

G7 leaders agreed May 8 to phase out imports of Russian energy, including oil, while ensuring "stable and sustainable global energy supplies and affordable prices for consumers."

The US, Canada, and the UK have already committed to ending Russian oil imports, and the issue is under heated debate among EU members, with Hungary a lone holdout.

Europe imported about 2.7 million b/d of Russian crude oil and another 1.5 million b/d Russian products, mostly diesel, before the Feb. 24 invasion of Ukraine.

Japan's willingness to sign onto the G7 promise to phase out Russian energy was seen as new, although Prime Minister Fumio Kishida said the process would take time to minimize the price impact.

Italy visit

Biden is set to meet with Italian Prime Minister Mario Draghi at the White House May 10. They are expected to continue talks around increasing European energy security and cutting dependence on Russian energy.

Draghi proposed setting a price cap on European imports of Russian gas as a way to increase pressure on Moscow without causing energy shortages. Italy gets about 40% of its gas supply from Russia.

Claudio Descalzi, CEO of Italian oil and gas producer Eni, is set to join Draghi on the Washington trip.

US support for European efforts to secure alternative energy sources could also be part of the talks, as it was when US National Security Adviser Jake Sullivan met with Draghi in Rome in March.

First trip to Asia as president

Over May 20-24, Biden will make his first trip to Asia as president, with bilateral meetings set with South Korean President-elect Yoon Suk Yeol, who takes office May 10, and Japan's Kishida.

South Korea has been among the top buyers of US crude exports in recent months, importing 317,000 b/d in March, according to US Census Bureau data.

Japan has vied to be the No. 2 buyer of US refined product exports in recent months, after Mexico. LPG has made up the bulk of the flows, with the US sending 462,000 b/d of LPG out of its 518,000 b/d of total refined products exports to Japan in February, according to the US Energy Information Administration.

In Tokyo, Biden will also meet with the so-called Quad group of leaders of Australia, India, and Japan.

The US and Japanese energy ministers met May 4 in Washington to discuss global energy security, strengthening energy cooperation, and climate policies, the US Department of Energy said.

They promised to continue to consult on LNG markets to alleviate supply constraints caused by the Russia-Ukraine war and to collaborate on methane emission-reduction measures.