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South Korea Fuel Exports to Russia Bypass Sanctions

Tankers Under Sanctions Deliver South Korean Fuel to Russia

(SEOUL) – South Korea has supplied Russia with more than 176,000 tonnes of fuel, with some shipments carried on tankers subject to international sanctions, according to an analysis of port records and vessel tracking data reported by The Guardian.

In July and August, seven tankers loaded the fuel, primarily diesel, at several South Korean ports, making 14 voyages to Russia’s Far East.

Three of the vessels involved are under sanctions. The largest, Layla, delivered 57,000 tonnes of diesel from the South Korean port of Ulsan to Vladivostok in two voyages. On its second trip, the vessel listed Niigata, Japan, as its destination but ultimately sailed to Russia. Another sanctioned tanker, the Russian-flagged Astoria, which is also subject to Australian sanctions, loaded nearly 11,000 tonnes of fuel in Ulsan on 1st August, also listing Japan as a destination before heading to Vladivostok.

The third sanctioned tanker, Chongchon, did not enter port. In early August, it conducted a ship-to-ship transfer of approximately 26,000 tonnes of fuel from the tanker Celeste I near the port of Yeosu before sailing to Vladivostok with Singapore listed as its destination.

While sanctioned vessels participated in the shipments, this likely does not violate South Korean law. Seoul’s own sanctions against Russia primarily concern the export of industrial equipment, electronics and vehicles. The owners or sellers of the fuel could not be identified as the relevant data is not available in South Korean port registers. The owners and operators of the other four tankers could not be reached for comment.

According to maritime analytics company Kpler, the fuel buyers included Rosneft, a Russian state-owned oil company under sanctions from the United Kingdom, the United States, the EU and Australia, and the Russian oil group NNK. Its owner, Eduard Khudainatov, and the company NNK-Oil are also under UK sanctions.

The shipments come as Russia’s oil-refining industry suffers serious disruptions from Ukrainian drone strikes. According to the International Energy Agency, in June the throughput capacity of Russian oil refineries fell to its lowest level in more than 20 years, while diesel fuel production declined by nearly 30 per cent year on year.

Throughout the war, South Korea has sought to balance its support for Ukraine with a desire to improve relations with Russia. Seoul has ruled out direct arms supplies to Ukraine, adhering to a policy of not supplying lethal weapons to countries at war. At the same time, South Korea has provided Ukraine with humanitarian aid and non-lethal military equipment, including helmets, body armour and demining vehicles, and in 2023 pledged 3.1 trillion South Korean won ($2.3 billion / £1.8 billion) in support, primarily as loans.

The volume of oil shipments from South Korean ports began to rise sharply in July, when the country’s President Lee Jae-myung promised at the NATO summit in Türkiye to allocate $100 million (£78 million) for Ukraine’s reconstruction.

In response to a request for comment, South Korea’s Ministry of Foreign Affairs did not comment on the shipments or the sanctioned tankers. In a statement, the ministry said that, as a “responsible member of the international community,” the government supports and actively participates in international efforts to end the war in Ukraine and peacefully rebuild the country.

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