Taiwan's Naphtha Dilemma: Balancing Economics and Ethics
Taiwan's private refiners may cease Russian naphtha imports if the EU requests, despite economic benefits. While state firms stopped Russian oil imports, private companies face no restrictions. Economy Minister Kung Ming-hsin engaged with both the EU and major petrochemical firms to consider adhering to potential new EU guidelines.
In the wake of international criticism, Taiwan's Economy Minister has addressed concerns about continued imports of Russian naphtha by the country's private refiners. The minister indicated a willingness to align with European Union and G7 regulations, should these bodies formally request such a cessation.
Despite having joined the U.S. in imposing broad sanctions on Russia post-Ukraine invasion, Taiwan's import policy did not explicitly block Russian energy. However, notes from the Ministry reveal dialogues with the EU, hinting at a potential shift in purchasing policies, especially among private enterprises like Formosa Petrochemical.
Formosa's spokesperson, K.Y. Lin, highlighted the company's strategy of buying naphtha from the most competitive sources globally. The firm stressed the economic importance of lower-priced Russian imports amidst financial strain in the petrochemical sector, although conceding to the potential future policy shifts based on international guidelines.
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