Hong Kong
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Taiwan imported $1.3 billion worth of the petroleum product naphtha from Russia in the first half of this yr, greater than anyplace else in the world, in response to a brand new report.
The purchases come regardless of Taiwan’s opposition to Russia’s war in Ukraine and sanctions on Moscow.
It additionally raises considerations about the self-governing island’s financial safety. China, which claims Taiwan as its territory, is a detailed companion of Russia, posing the danger it may lean on Moscow to chop off provides.
Naphtha is a necessary feedstock in the petrochemical trade for producing some uncooked supplies crucial for the manufacturing of digital parts and semiconductors – industries core to Taiwan’s financial system.
Taiwan has spent greater than $4.9 billion on purchases of the oil spinoff from Russia since Moscow launched its unprovoked invasion of Ukraine in 2022, in response to the report released Wednesday by Helsinki-based analysis institute Centre for Research on Energy and Clean Air.
Puma Shen, a legislator of the ruling Democratic Progressive Party, stated Taiwan’s reliance on Russian power “poses a threat to national security,” given the strategic alliance between Russia and China.
In the first half of 2025, Taiwan imported 1.9 million tonnes of Russian naphtha. The greenback worth of its common month-to-month purchases has surged practically six-fold from the 2022 ranges, the report stated.
NCS has reached out to Taiwan’s Ministry of Economic Affairs for remark.
Since Russia’s invasion of Ukraine, Taiwan has joined western-led sanctions towards Moscow, and has imposed export controls towards the nation.
This week, Taiwan’s international minister Lin Chia-lung wrapped up a visit to Europe, the place he attended the Warsaw Security Summit and called on Europe to affix fingers with Taipei in the combat towards authoritarian growth and create a “democratic supply chain.”
But not like the US, EU and another nations, Taipei has not restricted imports of Russian fossil gas products.
The report on Taiwan’s Russian naphtha imports comes as US President Donald Trump steps up threats and actions towards international locations buying crude and oil products from Russia. He not too long ago criticized European nations for persevering with to buy Russian oil and gasoline, declaring he wouldn’t transfer to use new sanctions on Moscow for the war till they reduce off their purchases.
And in August Washington slapped secondary tariffs on India over its continued purchases of Russian oil.
Signalling one other attainable spat, Taiwan this week vowed to resist pressure from Washington to shift half of its chip manufacturing capability to the United States, following feedback from US Secretary of Commerce Howard Lutnick.
Like Ukraine, Taiwan faces army threats from its personal expansionist neighbor in search of to soak up it.
“The global community of democracies has relied on economic sanctions to try to end Russia’s aggression against Ukraine. Taiwan’s trade and economic actions must align with our democratic partners, or we risk damaging our international reputation,” stated Shen, the legislator, at the report launch press convention Wednesday.
While Taiwan’s state-owned oil and gasoline firm CPC stopped receiving Russian naphtha imports in June 2024, one other Taiwanese petroleum heavyweight Formosa Petrochemical, which can also be a key provider to Taiwan’s world-beating semiconductor trade, has sharply elevated its imports, the report stated.
For instance, a refinery on Taiwan’s western coast owned by Formosa Petrochemical, elevated its reliance on Russian naphtha from 9% earlier than the invasion to 90% in the first six months of 2025. The facility accounted for 96% of Taiwan’s complete imports, the report stated.
Formosa Petrochemical rejected some of the report’s findings.
It stated in a press release to NCS that Russian naphtha imports have accounted for about 85% of its complete imports so far this yr, in response to its inner information. It added that it procures naphtha by open bidding, however it requires all provides to conform with worldwide sanctions and rules.
It emphasised that the greater share of imports from Russia displays world market circumstances, quite than an final result of the firm’s procurement technique.
“Should international rules tighten further, or should our government issue new prohibitions, the company will comply immediately and fully support all relevant measures,” it added.
Hsin Hsuan Sun, a director of Taiwan’s Environmental Rights Foundation and co-author of the report, urged the authorities and corporations to work collectively to determine clear plans to section out Russian power.
“Taiwan cannot afford to ignore the sanctions and supply chain risks created by its growing dependence on Russian fossil fuels,” Sun stated in a press release. “Taiwan should not be financing the Kremlin’s war machine.”