Taiwanese private refineries are ready to stop purchasing Russian naphtha - Minister of Economy

Private oil refineries in Taiwan are ready to stop purchasing Russian naphtha if the European Union asks for it, said the Republic's Minister of Economy Kung Ming-hsin. “We will respect and comply with EU and G7 norms. As far as I understand, next year the EU may refuse further purchases. If the EU announces a cessation of purchases next year, they [Taiwanese refineries] will no longer purchase anything,” Reuters quoted the minister as saying.

After launching a full-scale invasion of Ukraine, Taiwan imposed sanctions against Russia, joining the United States and its other Western allies. A ban on the import of Russian energy resources, however, was not among these sanctions.

A spokesman for Formosa Plastics Corporation told Reuters that the company buys Russian naphtha because it is cheap: “We just expect the markets to offer us competitive prices. We buy everywhere, there are no preferences, Russian naphtha is cheaper than most others, such as those from the Middle East or India.”

In early October, a group of environmental organizations published an investigation from which it followed that in the first six months of this year, Taiwan became the world leader in purchases of Russian naphtha. As reported, products from the processing of Russian naphtha are then sold, including to Western European countries that support sanctions against the Russian mining industry. According to the calculations presented, Russia supplied $1.3 billion worth of naphtha to Taiwan over six months.