South Korea halts MTBE exports to Russia as Western sanctions tighten

South Korea discontinued exports of MTBE to Russia in February, the latest customs data showed, as the East Asian country joined the US and European Union in distancing itself from Moscow after the Ukraine invasion.

Latest customs data showed there were no exports in February. South Korea exported two MTBE cargoes to Russia in November 2021 and January 2022, the data showed.

"Korea's energy exports to Russia will be very likely to be marred given the current Korea-US political ties," Keun Wook Paik, a Korea-Russia energy expert and previously a member of British Chatham House told S&P Global Commodity Insights earlier.

In a rare move, South Korea exported 5,008.7 mt of MTBE to Russia in January amid lucrative arbitrage economics on paper from Asia to the Amsterdam, Rotterdam or Antwerp region during the month, previous customs data showed.

This was the second recorded trade of MTBE between South Korea and Russia following November's 5,236.7 mt.