A South Korean private company has successfully imported Russian naphtha after the United States temporarily lifted restrictions on Russian crude oil and naphtha imports, the Ministry of Trade, Industry and Energy (MOTIE) reported.
The ministry disclosed the development at a meeting of the Democratic Party of Korea's Special Committee on Economic Response to the Middle East War held at the National Assembly on Wednesday. MOTIE told committee members that a private company had succeeded in importing Russian naphtha. The ministry added that it is working alongside the Ministry of Foreign Affairs to secure additional supplies.
A lawmaker on the special committee said, "It appears companies have mobilized their own business networks to secure naphtha," adding that "the government is also doing its best to stabilize naphtha supply and demand."
With the industry pouring all efforts into finding alternative supply routes, including Russian sources, to keep factories running, the private sector appears to have carved out its own path.
However, some view that it will not be easy for Russian crude oil and naphtha imports to materialize immediately on a broader scale. Another committee member said, "It appeared it would take some time before our companies can smoothly bring in Russian supplies."
South Korea depends on imports for 45% of its domestic naphtha demand, with Middle Eastern sources accounting for 77% of those imports, making the country increasingly vulnerable to supply disruptions from the Middle East conflict.
A day earlier, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said in a KBS appearance regarding Russian naphtha imports, "The United States has lifted export controls on Russian products for one month," adding, "I understand that reviews are underway, some consultations are being held, and various situations are being examined."