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Taiwan emerges as top importer of Russian naphtha despite Ukraine support

2025/10/01/07:09
in Asia finance
Reading Time: 2 mins read
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Taiwan has become the largest global importer of Russian naphtha, a crude oil product, even as it publicly aligns with Western allies in support of Ukraine and sanctions against Moscow. Data shows that the island imported around $1.3 billion worth of naphtha in the first half of 2025, raising questions about the consistency of its foreign policy and sanctions enforcement.

A complex trade reality
According to recent trade figures, Taiwan’s reliance on naphtha imports has surged as its petrochemical sector continues to demand large volumes of feedstock for plastics and other industrial products. Russia, seeking to redirect exports away from Europe under sanctions, has found a ready buyer in Asia. Taiwan’s purchases now place it ahead of countries such as India and Singapore, both of which have also expanded imports of Russian energy products.

Contradictions with the sanctions stance
The findings are politically sensitive, given Taiwan’s vocal support for Ukraine since Russia’s 2022 invasion. The island joined Western partners in sanctioning Russian banks and restricting high-tech exports. However, energy products, particularly refined goods such as naphtha, have often fallen into grey areas of enforcement, allowing trade flows to continue despite official restrictions.

Strategic and economic pressures
Analysts say Taiwan’s petrochemical industry faces few immediate alternatives to Russian supply, particularly at a time of volatile global oil markets. Rising demand from domestic manufacturers and competitive pricing from Russian sellers have contributed to the sharp increase. Yet critics warn that the dependence risks undermining Taiwan’s credibility on the international stage, as well as exposing it to reputational damage in the broader sanctions framework.

Geopolitical implications
The revelations come at a delicate moment, with Taiwan positioning itself as a strategic partner to Western nations amid rising tensions with China. While Taipei has framed its Ukraine stance as a signal of solidarity against authoritarian aggression, its trade with Russia suggests a more pragmatic calculation is at work. European and U.S. policymakers are likely to press Taiwan for clarity on how it intends to reconcile these conflicting positions.

Looking ahead
Unless alternative supply chains are secured, Taiwan’s reliance on Russian naphtha is expected to persist in the near term. Industry observers note that diversification toward Middle Eastern and Southeast Asian suppliers could reduce exposure, but this will take time. For now, Taiwan finds itself balancing strategic alliances with pressing economic needs — a precarious position that may intensify scrutiny from its allies.

Newshub Editorial in Asia – 2025-10-01

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