Seoul seeks exemption from UK sanctions on Russian LNG: official
Seoul, Aug 6
South Korea's trade minister on Thursday asked his British counterpart to exempt South Korea's imports of Russian Liquefied Natural Gas from Britain's upcoming sanctions, citing concerns over Seoul's energy security.
Trade Minister Yeo Han-koo made the request during a video meeting with Britain's newly appointed Minister for Trade Anas Sarwar to discuss bilateral trade issues, the Ministry of Trade, Industry and Energy said in a press release, Yonhap News Agency reported.
"Britain's plan to ban the provision of maritime transport, insurance and related services for Russian LNG starting in January 2027 could undermine South Korea's energy security and the stability of its LNG supply," Yeo said.
Without an exemption, the measure could disrupt imports of Russian LNG by the state-run Korea Gas Corp. (KOGAS), which has a long-term contract to purchase LNG from the Sakhalin-II oil and gas project off Russia's Pacific coast through March 2028, the ministry said.
The ministry also warned that shipments could be disrupted if British insurers suspend reinsurance and other services related to the contract.
The European Union (EU), which adopted similar sanctions, agreed last month to exempt LNG shipments from the Sakhalin-II project to South Korea and Japan.
Yeo called for close consultations with Britain and urged it to adopt a similar exemption.
He also urged Britain to allocate reasonable import quotas for South Korean steel products after the country recently tightened its safeguard measures on steel imports.
On July 1, Britain reduced import quotas for steel products by nearly half and imposed a 50 per cent tariff on shipments exceeding the quotas.
Although South Korea's duty-free quota increased to 173,000 tons from 93,000 tons, the number of steel product categories covered by the quota also rose to nine from four, effectively tightening the restrictions.
— IANS
Reader Comments
Interesting how the EU already gave an exemption for Sakhalin-II shipments to South Korea and Japan but the UK hasn't. Seems like bureaucratic delays more than anything else. Hope they sort it out before 2027 - nobody wants energy prices to spike!
The steel part of this story is also important. Britain reduced quotas and added a 50% tariff on excess shipments - that's basically protectionism. South Korea is being squeezed on both energy and trade. Every country is looking out for itself, and Seoul is right to do the same.
Sanctions should have carve-outs for genuine energy security concerns. The EU understood that, and the UK should too. If British insurers pull out, it's not just South Korea affected - global LNG supply chains get disrupted and everyone pays more. 🤔
Honestly, these Western sanctions keep hurting allies more than Russia. First Europe got hit with energy crisis, now South Korea has to beg for exemptions. Meanwhile Russia keeps selling LNG to whoever wants it. Does anyone think these sanctions are actually working as intended?
I think there's some valid criticism here - the UK should consider long-term allies' energy needs before imposing sanctions. But also, Seoul could have diversified its LNG sources instead of relying on Russian gas until 2028. Energy security means having options.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.