Japanese Media "Increase in South Korea and Taiwan's Russian Energy Imports"
Energy Price Surge Leads to 44% Rise in Import Value
Key US Ally Israel Also Shows Reluctance on Sanctions
[Asia Economy Reporter Hyunwoo Lee, Sejong=Reporter Dongwoo Lee] Despite the strengthening of sanctions against Russia led by the United States and the European Union (EU) following Russia's invasion of Ukraine, imports of Russian energy by various countries have actually increased. Not only countries such as China and India, which did not participate in the sanctions against Russia, but also major U.S. allies have continuously increased their imports from Russia, raising concerns that the sanctions are not delivering a substantial blow to Russia.
On the 14th, Japan's Nihon Keizai Shimbun reported, "Since the Ukraine crisis, not only China but also South Korea and Taiwan, which are participating in sanctions against Russia, have seen a significant increase in imports from Russia," adding, "This is becoming a weakness of the sanctions." In fact, South Korea's imports from Russia last month totaled $1.6162 billion, a 43.6% increase compared to the same period last year. This contrasts with exports during the same period ($481 million), which decreased by 48.5%.
South Korea's imports from Russia mainly consist of energy resources such as crude oil, naphtha, heavy oil, thermal coal, and natural gas. In particular, as international oil prices fluctuated around $100 per barrel following the Ukraine crisis, the rise in prices of crude oil and refined products is estimated to have significantly increased the import value. Regarding the reason for the more than 40% increase in import value despite sanctions against Russia, a Ministry of Trade, Industry and Energy official stated, "It is estimated to be the effect of raw material prices soaring to more than twice compared to the previous year."
There are also concerns that major EU countries such as Germany strongly oppose bans on Russian energy such as oil and natural gas, and that oil companies are employing various tricks to evade sanctions.
According to Bloomberg News, global oil major Shell has recently been mixing Russian oil products with products from other regions to evade sanctions. Bloomberg reported, "Oil products that are 49.99% Russian and 50.01% sourced from elsewhere can evade sanctions," and pointed out, "As the EU has not imposed a ban on Russian energy, the practice of mixing Russian oil in international waters near Latvia, which borders Russia, is increasing."
Not only Middle Eastern pro-U.S. countries such as Saudi Arabia and the United Arab Emirates (UAE), but also Israel, a key U.S. ally, have been passive regarding sanctions against Russia. According to The New York Times (NYT), Israel has expressed support for Ukraine but has not implemented military support or official sanctions against Russian President Vladimir Putin and his associates.
According to the NYT, about 13% of Israeli citizens are of former Soviet origin. Many Soviet-born figures, including Avigdor Lieberman, Israel's Minister of Finance, have entered Israeli politics, including the cabinet. The NYT also pointed out that Jewish Russian oligarchs such as Roman Abramovich, who obtained Israeli citizenship in 2018, have exerted influence by donating significant funds to Israeli politics and media.
Amid the emerging limitations of sanctions against Russia, Russia is taking retaliatory counter-sanctions. The Russian Ministry of Foreign Affairs announced in a statement that it has added 398 U.S. House Representatives and 87 Canadian Senators to the list of individuals banned from entering Russia. The Ministry warned, "This sanction is a retaliatory measure against sanctions on Russia, and new retaliatory measures will be announced in the future."
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