Russia's Suspension of Petroleum Product Exports... Government Says "No Impact on Han"

On the 21st (local time), in response to Russia's announcement of an indefinite suspension of oil product exports, the South Korean government stated that there is no impact on the domestic market.

The Ministry of Trade, Industry and Energy announced on the 26th that since imports of Russian oil products have been virtually nonexistent following the implementation of the price cap on Russian oil, there is no supply and demand impact from this measure.

Russia has been enforcing a price cap on crude oil products since December 5 last year, and on oil products since February 5 this year. Subsequently, from the 21st, it announced an indefinite suspension of exports of gasoline and diesel. This export suspension is understood to be due to rising prices caused by a shortage of domestic oil product supply in Russia, coupled with increased demand for agricultural fuel during the harvest season.

Regarding this, the Ministry explained that most gasoline and diesel in South Korea are supplied from domestic production, with imports accounting for a negligible portion. From January to August this year, the share of Russian oil products in domestic petroleum products was 0.01%. During the same period, Russian-origin diesel accounted for only 0.03% of domestic diesel imports.

The Ministry emphasized that while Russia's suspension of oil exports could contribute to an increase in international product prices, this could also lead to a rise in export prices of domestic oil products. As of 2021, South Korea ranked 9th among all countries, accounting for 4.87% of global oil product exports. A Ministry official stated, "We will continue to monitor international oil price fluctuations and trends in oil product imports resulting from Russia's export suspension."

This content was produced with the assistance of AI translation services.