Taiwan Tops Global Naphtha Imports From Russia Amid War Concerns
Taiwan has emerged as the top global importer of Russian naphtha, a key semiconductor industry component. In the first half of 2023, Taiwan imported $1.3 billion, a significant increase from previous years. This has raised concerns about potential implications for both Taiwan and Russia.
Taiwan's naphtha imports from Russia surged by 44% compared to the first half of 2022. On average, monthly imports were nearly six times higher than the 2022 average. This increase has made Taiwan the largest importer of Russian naphtha globally. Formosa Petrochemical, a Taiwanese company, accounts for 96% of these imports, with its dependency on Russian naphtha rising from 9% in 2021 to a staggering 90% in the first half of 2023.
Taiwan's Ministry of Foreign Affairs and Ministry of Economic Affairs are currently reviewing regulations and engaging with Taiwanese industries to address this issue. They are exploring ways to diversify energy sources and reduce reliance on Russian oil. Despite joining international sanctions against Russia and supporting Ukraine, Taiwan has not restricted purchases of Russian fossil fuels. This is partly due to Taiwan's high energy import dependency, with about 97% of its energy coming from abroad, making it vulnerable in potential conflicts with China.
Taiwan's increased imports of Russian naphtha have significant implications. They fund Moscow's war efforts, with Taiwan accounting for 20% of Russia's total naphtha exports since February 2022. However, Taiwanese officials have reassured that these purchases should not be over-interpreted in terms of military support to China. Taiwan is actively working to diversify its energy sources and reduce its reliance on Russian oil.
