Korean company purchases 27,000 tons of Russian naphtha
¬ Belgium to join coalition ensuring freedom of navigation in the Strait of Hormuz
Amid ongoing conflict in Iran, global energy markets are experiencing unprecedented turbulence, as the Middle East remains one of the world’s key regions for oil and natural gas exports.
According to news agency NEWS1, citing the South Korean Ministry of Industry, Trade and Energy, a Korean company has successfully purchased 27,000 tons of naphtha from Russia.
NEWS1 reported that this batch of Russian naphtha is expected to arrive in South Korea on March 30.
The Ministry of Industry, Trade and Energy announced at a special committee meeting of the ruling Democratic Party addressing economic issues arising from the Middle East conflict: "The 27,000 tons of Russian naphtha purchased by a private Korean company are expected to arrive in Korea on Monday."
It is understood that this transaction became possible due to temporary U.S. relaxation of export controls on Russian oil and petroleum products, with confirmation from the U.S. government that this purchase will not be subject to secondary sanctions.
As News1 pointed out, this procurement stands out because it marks the first case of securing an alternative supply chain amid instability in Middle Eastern naphtha supplies.
However, the volume of this purchase remains relatively small. Prior to the escalation of tensions in the Middle East, South Korea’s monthly naphtha consumption averaged around 4 million tons.
About 45% of South Korea’s naphtha demand is met through imports, with 77% coming from Middle Eastern countries—making the Korean market highly sensitive to regional instability.
Previously, Kim Dong-chun, CEO of LG Chem, a major South Korean petrochemical company, expressed gratitude to the South Korean government for its support and coordination in enabling the company to procure Russian naphtha during fuel and petroleum product supply disruptions caused by the Middle East conflict.
LG Chem confirmed earlier on Monday to Russian Satellite Communications Agency that the company is considering sourcing naphtha from regions outside the Middle East, including Russia.
Belgian Defense Minister Theo Francken stated that Belgium will join the "voluntary coalition" aimed at ensuring freedom of navigation in the Strait of Hormuz.
Francken added that Belgium will work alongside France and all other willing partners to achieve this strategic objective as soon as regional conditions allow—for example, following a ceasefire.
Earlier, French President Emmanuel Macron said Paris is willing to share responsibility for escorting vessels through the Strait of Hormuz with partners once the situation stabilizes.
On February 28, the United States and Israel conducted multiple strikes against targets inside Iran, including attacks on Tehran, causing damage and civilian casualties. In response, Iran launched retaliatory missile strikes against Israeli territory and U.S. military targets in the Middle East.
Original source: toutiao.com/article/1861089832422409/
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