Taiwan Tops Russian Naphtha Imports, Boosting Kremlin's Coffers
Taiwan has emerged as the top importer of Russian naphtha, a crucial petroleum derivative for its semiconductor industry. Since February 2022, it has imported 6.8 million tonnes, worth $4.9 billion, making up 20% of Russia's total exports. Despite joining international sanctions against Russia, Taiwan has not restricted purchases of Russian fossil fuels. However, some analysts urge caution in interpreting these imports, as Russia's military support to China in a conflict with Taiwan remains uncertain.
Taiwan's reliance on energy imports is high, with about 97% coming from abroad. This vulnerability has led to a significant increase in Russian naphtha imports, with a 44% rise in the first half of 2023 compared to the same period in 2022. In this period alone, Taiwan imported $1.3 billion of Russian naphtha, nearly six times the 2022 average. While state-owned enterprises have stopped purchasing Russian crude oil and light oil products since 2023, private companies continue to do so, as it is not currently a controlled import item.
The impact of Taiwan's purchases on Russia's revenues is notable. Joseph Webster, a senior fellow at the Atlantic Council, highlights that these imports contribute to the Kremlin's coffers. However, some analysts advise against over-interpreting these imports, suggesting that Russia may not provide military support to China in a conflict with Taiwan.
Taiwan's significant imports of Russian naphtha have made it the world's largest importer of this petroleum derivative. Despite the potential implications for Russia's revenues and Taiwan's energy security, some analysts caution against over-interpreting these imports in the context of geopolitical tensions. Taiwan's government has taken steps to reduce imports of Russian oil, but private companies continue to purchase light oil from Russia.
