South Korea is preparing to take immediate action if Russia’s invasion of Ukraine results in a disruption to energy shipments.
Seoul is considering various measures, including tapping its strategic oil reserves and securing alternative cargoes, the finance ministry said in a statement. It will look to buy oil from the U.S., the North Sea and the Middle East, coal from Australia, South Africa and Colombia, and gas from Qatar, Australia and the U.S., the ministry said.
About 17% of South Korea’s coal imports came from Russia last year, while it got 6% of its oil and 5.3% of its gas from the country, according to Korea Customs Service data. Seoul also plans to cooperate with the International Energy Agency if there’s a request for a joint effort to stabilize oil prices. The U.S. is also said to be working on coordinating an international release of crude to counter a surge in prices due to the crisis in Europe.
“South Korea is currently having discussions with the rest of the world to participate in an effort to address the energy crisis,” Trade Minister Yeo Han-koo said at a briefing Friday. “There haven’t been any discussions about potentially imposing sanctions on any energy products.”
South Korea still has sufficient energy supplies, however, and isn’t seeing an immediate shortage following the Russian invasion, the energy ministry said in a separate statement.
The country was the first to follow a White House-led joint release of crude late last year. It has also been grappling with inflationary pressures, and temporarily slashed fuel taxes to rein in price increases.
Follow us on social media: