South Korea is in talks with firms to import Russian crude and naphtha, seeking to diversify energy supplies as Middle East conflicts threaten key shipping routes.

SEOUL: South Korea’s government is discussing with domestic companies the possibility of resuming imports of Russian crude oil and naphtha. The Industry Ministry confirmed the talks, linking the issue to a potential easing of economic sanctions on Russia.

Authorities are exploring options to safeguard energy supplies amid escalating conflict in the Middle East. South Korea stopped all imports of Russian crude oil in December 2022 following Moscow’s invasion of Ukraine.

Before the ban, Russian crude accounted for 5.6% of South Korea’s total shipments in 2021. The country’s energy exposure to the Middle East has increased significantly since the Ukraine war began.

South Korea currently imports around 70% of its crude oil and half of its naphtha through the Strait of Hormuz. This key shipping chokepoint is now a major security concern.

Naphtha is a critical feedstock for the country’s massive petrochemical industry. It is broken down into materials used for plastics in automobiles, electronics, clothing and construction.

In a related move, Finance Minister Koo Yun-cheol said the country will limit naphtha exports. The government will also temporarily designate the feedstock as a supply-chain economic security item.

 The Sun Malaysia