South Korea Ships Diesel to Russia Amid Ukraine

South Korea has shipped over 176,000 tonnes of diesel fuel to Russia in July and August. Despite backing Ukraine's efforts to end the war in Ukraine. The fuel was loaded at several South Korean ports and carried to Russia's far east in 14 voyages by seven tankers.

The largest carrier, the sanctioned Layla, made two trips from Ulsan in south-eastern South Korea to Vladivostok, carrying 57,000 tonnes of diesel in total. The Russian-flagged Astoria, also under Australian sanctions, loaded nearly 11,000 tonnes of fuel at Ulsan on 1 August.

Read More: Gold and Silver Prices to Remain Volatile Amid US Dollar, Bond Yields, and US-Iran Tensions

Three sanctioned tankers, including the Layla, Astoria, and Chongchon, sailed to Russia, carrying a total of 78,000 tonnes of diesel. The tankers were under UK and European Union sanctions.

South Korea has provided humanitarian aid and non-lethal military supplies to Ukraine, including $2.3bn in support and $100m for reconstruction. However, the country has also sought to maintain ties with Russia, including trade ties.

South Korea's efforts to counter Russia's influence are largely centered on regulating the export of critical goods. This includes industrial machinery, electronics, and vehicles, with the government maintaining a watchful eye on the effectiveness of its export control measures.

According to Ukraine's HUR, Moscow's reliance on imported fuel has become increasingly dire, with the country relying on sea shipments to sustain its military efforts. In August, Russia brought in 368,000 tonnes of oil products, a significant influx according to data from Kpler, which was further analysed by CREA.

Also Read: RBI Policy Decision to Watch as India's External Balances and Inflation Outlook Face Pressure

South Korea supplied 112,000 tonnes, or 31%, of the total, second only to India. Kpler data showed that buyers included Rosneft, Russia's state-controlled oil company, which is under UK, US, EU, and Australian sanctions.

Seoul's foreign ministry said it had expanded export controls on Russia under the Foreign Trade Act "beyond strategic items to 1,402 non-strategic items with a high potential for diversion to military use" and was "strictly enforcing" them.