Oil from South Korea being shipped to Russia as Ukraine war grinds on

AI desk brief

South Korean fuel shipments to Russia via sanctioned tankers highlight a sanctions leak that could support crude and fuel prices if enforcement tightens, with knock-on inflation implications for precious metals. Guardian analysis found more than 176,000 tonnes of mostly diesel loaded at South Korean ports in July-August on seven tankers making 14 voyages to Russia’s far east, including vessels under UK/EU sanctions and one ship-to-ship transfer designed to obscure cargo origin.

The article says Russia’s refinery system has been heavily disrupted by Ukrainian drone strikes, with June throughput at a more than 20-year low and diesel output down nearly 30% y/y, forcing Moscow to import refined products. Kpler/CREA data show Russia imported 368,000 tonnes of oil products by sea in August, with South Korea supplying 112,000 tonnes, or 31%, making it the second-largest source after India.