The government secured confirmation from the U.S. government that Korea would not face a secondary boycott (third-party sanctions) even if it imports Russian crude oil and petroleum products. It also confirmed that payments can be made not only in dollars but also in Chinese yuan, Russian rubles, and United Arab Emirates (UAE) dirhams.
Yang Ki-uk, Deputy Minister for Industry and Resource Security at the Ministry of Trade, Industry and Resources, said at a briefing of the Middle East Situation Response Headquarters on the 25th, "Regarding imports of Russian crude, we held separate consultations with the U.S. government," and stated accordingly.
On the 12th, a temporary U.S. sanctions relaxation opened the possibility of transactions for Russian cargoes afloat on the high seas, but domestic refiners have taken a cautious stance on introducing them due to financial settlement risks and concerns about a secondary boycott. In response, the government obtained official confirmation.
The Deputy Minister said, "We will swiftly relay the relevant details to industry and the financial sector today."
However, uncertainty in the industry has not been fully resolved. Issues such as crude quality assurance and reliability remain. The Deputy Minister said, "The likelihood of importing naphtha appears relatively higher than Russian crude," and added, "If refiners specify concrete difficulties, we will step in actively."
Meanwhile, although foreign media reported that QatarEnergy, a Qatari state-owned energy corporation, would declare force majeure on long-term liquefied natural gas (LNG) supply contracts with four countries—Korea, Belgium, Italy, and China—the government said it has not yet received an official notice. It was also confirmed that QatarEnergy told Korea Gas Corporation (KOGAS), "This is not yet an official position."
The Deputy Minister said, "QatarEnergy mentioned the possibility of declaring force majeure on the 19th, and there is precedent from early March when it declared force majeure through early April, so we are not ruling out the possibility of formalization." Of Qatar's 14 LNG lines, two are damaged, resulting in a loss of about 20% of capacity relative to production capability, and recovery is expected to take three to five years.
Since the government excluded Qatari volumes from supply plans in consideration of potential disruptions after the outbreak of war, it says any immediate supply shock will be limited. However, the issue is price.
The Deputy Minister said, "If a force majeure declaration is formalized, global gas prices are likely to rise, which could lead to an increase in the system marginal price (SMP) and affect electricity and city gas rates across the board," adding, "There is a possibility of higher bill burdens after the second half of the year."
In response, the Ministry of Trade and Industry (MOTI) said it is working with the climate ministry to raise nuclear power plant utilization and reduce the share of gas-fired generation.