South Korean authorities probe origins of naphtha imports
(Reuters) - South Korean authorities are investigating imports of naphtha, a petrochemical feedstock, looking into whether supply from Russia was being mislabeled as fuel from elsewhere, multiple sources familiar with the matter said.
It could not immediately be determined why authorities were probing the origin of the naphtha, although Russian-origin energy cargoes have come under closer scrutiny in the aftermath of the sanctions on Moscow.
The authorities have sought information from South Korean petrochemical firms as well as Trafigura, a global commodities trader which is among several companies selling naphtha into the country, sources said, declining to be named as they are not authorized to speak to the media.
The sources said they had no further details, including which Korean petrochemical firms had been contacted.
Trafigura declined to comment.
The Korea Customs Service declined to comment. A National Police Agency official said he had no immediate comment.
One of the sources said authorities including police and customs officials were looking into naphtha labelled as imported from Tunisia. Naphtha imports from Tunisia started in late 2022, with about 10,000 barrels per day (bpd) imported in 2023, Kpler data showed.
The probe was first reported by Bloomberg.
South Korea was Asia's top naphtha importer at 560,000 bpd last year, Kpler data showed.
The Group of Seven (G7) countries, the European Union and Australia set price caps for Russian crude and oil products to allow access to western services and keep markets supplied while limiting Moscow's revenues in the aftermath of its invasion of Ukraine. The EU banned import of those fuels from Feb. 5, 2023.
South Korea supports the G7 price cap.
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