South Korea investigates the origin of imported oil, focusing on supplies from russia

South Korea is investigating the origin of imported oil, paying particular attention to Russian supplies. This was reported by Bloomberg, according to UNN.

Details

The South Korean government has launched an investigation into the origin of imported oil, a key ingredient for plastics production, focusing on russian supplies.

According, the investigation covers the procurement of several petrochemical companies in South Korea.

It turned out that at least one of South Korea's largest producers is linked to the dubious origin of imported raw materials. Over the past week, the customs service has been actively investigating this issue. Sources also claim that the South Korean authorities have established links with the Trafigura Group trading house.

In the course of the investigation, the authorities are checking the origin of goods purchased by end users in South Korea. Particular attention is being paid to the possibility of relabeling russian oil and its subsequent sale under other labels.

Recall

Due to the US sanctions against Iran, South Korean petrochemical companies have had difficulties in recent years with the supply of Iranian condensate, their main source of raw materials. This has led to a shift in priorities to russian oil, but the war in Ukraine has also complicated this process.

Add

According to the analytical company Kpler, before the war in Ukraine, russia was the main supplier of oil to South Korea, accounting for more than 25% of the country's imports in 2021. However, after the conflict began, buyers avoided direct purchases of russian fuel due to US sanctions and possible increased government control. Consequently, imports from other countries, such as Tunisia, the United Arab Emirates, and Singapore, are on the rise.