S.Korean naphtha importers to stop buying from Russia
South Korean naphtha cracker operators are expected to stop importing Russian petrochemical products after deliveries from existing contracts are completed, two industry sources told Reuters.
The country's naphtha cracker operators will not sign any new contracts for Russian products and are working to diversify to other sources such as U.S. and India, the sources said, declining to be identified as they are not authorized to speak to media.
"Companies are unwilling to take the risk of trying to bring in Russian products after sanctions by the U.S. and others, when import and export processes could fall apart on any one of many points such as financial, insurance and shipping," said one of the sources.
South Korean naphtha cracker operators had already flagged the possibility of seeking alternative supplies beside Russian petrochemical products, after Western countries imposed aggressive sanctions on Moscow following the invasion of Ukraine.
(Reporting by Joyce Lee; Editing by Raju Gopalakrishnan)
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