Companies from South Korea in 2022 more than doubled the export of motor oils to Russia after the departure of Western companies from the country
From：Taiwan Trade Center, Moscow
This was reported by the Financial Times on July 9, 2023, with reference to South Korean statistics.
Deliveries of motor oils from South Korea to Russia in 2022 in monetary terms increased by 116.7% and amounted to 229 million US dollars.
The publication notes that:
• South Korean exports to Russia of motor oils that can be used in tanks, armored vehicles and other military equipment more than doubled in 2022,
• Companies from South Korea took advantage of the withdrawal from the Russian market of Western manufacturers, such as TotalEnergies, Shell and BP, which voluntarily reduced the scale of their activities in Russia due to the conflict in Ukraine.
FT also analyzed Russian import data and came to the conclusion that the beneficiaries of the departure of Western competitors were SK Enmove and GS Caltex:
• SK Enmove is a daughter of the South Korean conglomerate SK Group,
• GS Caltex is a joint venture of the South Korean GS Group and the American Chevron GS Caltex.
In January 2022, these 2 companies delivered products worth approximately 2.8 million US dollars, but since then their supply volumes have increased sharply, reaching a peak in March 2023 of 28 million US dollars.
SK Enmove accounts for 6.5% of Russian motor oil imports, while GS Caltex accounts for just over 5%.
Unlike the USA and the EU, South Korea has not imposed a ban on the export of motor oils to Russia.
None of the Korean companies has been accused of violating international sanctions prohibiting the sale of motor oils.
At the same time, the publication emphasizes that both companies declare precautions taken to ensure that their products are not used for military purposes.
In particular, GS Caltex reported that its contract with a Russian private company contains clear rules for the resale of products.
Domestic manufacturers of motor oils also took advantage of the withdrawal of Western manufacturers from the Russian market.
Earlier, Gazpromneft Lubricants reported that the redistribution of market shares left by foreign suppliers and ongoing production development projects provide opportunities for production growth.
At the end of 2022, the General director of Gazpromneft Lubricants A. Skoromets said that, according to the company's forecast, the volume of production for the entire range, including oils, lubricants and paraffins, will amount to 0.7 million tons/ year.
In 2023, the company expects to further increase its total output.