Singapore's Import of Russian Naphtha Rises Due to EU Embargo

Singapore: Recent government data has revealed a significant increase in the importation of Russian Naphtha to Singapore during the first quarter of 2023. Following the imposition of the European Union's embargo on Russian oil products, Singapore's Asia oil hub imported 741,000 tonnes of Naphtha. This figure accounts for approximately 23% of the nation's total Naphtha imports, a notable increase from the 261,000 tonnes imported during the previous quarter of 2022.

The G7 nations and the EU/Australia have implemented a ban on all Naphtha trades via Western ships and insurance with a fine of US$45 to reduce Moscow's earnings and maintain lower global oil prices. As a result, Singapore's Naphtha exports have seen a boost of 26% since Q4 of 2022, as key importers including South Korea, China, Taiwan, and Japan have turned towards Singapore to fulfil their imports.

Despite Singapore not being affected by the EU ban, a government representative has advised local businesses to consider the possible impacts of dealing with Russian crude oil or processed products. Consequently, Russia has sought out alternative Naphtha trading partners, and is set to transport unprecedented volumes to commercial centres in Brazil, Tunisia, and the Middle East, a deal that experts and traders anticipate will persist beyond 2022.