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South Korea's trade minister has formally requested that Britain exempt Seoul's imports of Russian liquefied natural gas (LNG) from upcoming sanctions, warning that the measures could disrupt the country's energy security. The appeal was made during a phone call between Yeo Han-koo, Head of Trade Negotiations at South Korea's Ministry of Trade, Industry and Energy, and Britain's newly appointed Minister of State for Trade, Anas Sarwar, on August 6, according to statements from the South Korean ministry reported by TASS and Yonhap News Agency.
Coverage comparison
TASS, quoting the South Korean ministry, reported that Yeo "warned his British counterpart that the UK's upcoming sanctions on Russian LNG exports could undermine South Korea's energy security." The agency highlighted Seoul's concerns about "the stability of LNG supplies to the Republic of Korea under existing contracts, amid the UK's comprehensive ban on services, including insurance and maritime transportation, for Russian LNG."
Yonhap, South Korea's leading wire service, framed the development as a direct request for an exemption, reporting that Yeo "asked his British counterpart to exempt South Korea's imports of Russian LNG from Britain's upcoming sanctions, citing concerns over Seoul's energy security." The Yonhap report included a direct quote from Yeo: "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."
Both agencies reported that the UK restrictions are expected to take effect in January 2027. They also noted that the European Union, which adopted similar sanctions, had previously granted an exemption for Seoul in its 21st package of measures against Russia. Yonhap specified that the EU "agreed last month to exempt LNG shipments from the Sakhalin-II project to South Korea and Japan."
Key claims
- South Korea's trade minister Yeo Han-koo requested an exemption from Britain's upcoming sanctions on Russian LNG during a call with UK Trade Minister Anas Sarwar on August 6, as reported by both TASS and Yonhap.
- The UK's planned ban on services such as insurance and maritime transport for Russian LNG, set to begin in January 2027, could undermine South Korea's energy security and disrupt LNG supplies, according to the South Korean Ministry of Trade, Industry and Energy as reported by TASS and Yonhap.
- The European Union granted South Korea an exemption from similar sanctions in its 21st package, a point emphasized by both TASS and Yonhap.
- South Korea's state-owned utility KOGAS holds a long-term LNG supply contract under the Sakhalin-2 project running through March 2028, according to both sources.
- The ministry warned that shipments could be disrupted if British insurers suspend reinsurance and other services related to the contract, as reported by Yonhap.
- Yeo also raised a separate trade matter, urging Britain to allocate reasonable import quotas for South Korean steel products, according to Yonhap. The report noted that on July 1, Britain reduced import quotas for steel products by nearly half and imposed a 50 percent 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 rose to nine from four, effectively tightening restrictions.