A key ally of Russian President Vladimir Putin has called South Korea's consideration of importing Russian crude oil a "wise choice," as Seoul and domestic refiners explore options to address energy supply concerns.
Kirill Dmitriev, Russia's special envoy for foreign investment and economic cooperation and head of the Russian Direct Investment Fund (RDIF), shared news reports about Korea's review of Russian oil imports on X (formerly Twitter) on the 19th (local time).
"Like everyone else who is smart," Dmitriev wrote, according to Russian state news agency TASS.
The reports Dmitriev referenced cited foreign media stating that South Korea's Ministry of Trade, Industry and Energy is examining the possibility of importing Russian crude oil and naphtha.
The government is reportedly reviewing the potential resumption of imports with domestic refiners, considering the recent temporary easing of U.S. sanctions on Russian oil.
South Korea halted Russian crude imports at the end of 2022 after joining Western sanctions following Russia's invasion of Ukraine. In 2021, before the ban, Russian oil accounted for approximately 5% of Korea's total crude imports.
The shift reflects concerns over potential Middle East supply disruptions. About 70% of Korea's crude oil imports and roughly half of its naphtha pass through the Strait of Hormuz.
Following recent U.S. and Israeli airstrikes on Iran, Tehran has blocked the Strait of Hormuz, severely disrupting global oil shipments. International oil prices have surged past $100 per barrel, intensifying market uncertainty.
The government is simultaneously considering other measures beyond Russian oil imports. Options include utilizing crude stored domestically by foreign oil-producing countries and global oil companies, as well as releasing strategic petroleum reserves.
Seoul is also reviewing the timing and scale of releasing more than 20 million barrels of reserves secured through coordination with the International Energy Agency (IEA), adjusting based on market conditions.
The U.S. Treasury Department previously announced measures temporarily permitting transactions involving Russian crude and petroleum products to stabilize global oil prices. However, Ukraine has expressed strong concerns that easing sanctions could help fund Russia's war effort.
