Introduction to Taiwan’s Energy Imports
Trade data suggests that volumes of Russian naphtha, a refined crude oil product flowing into Taiwan, remain stable despite Taipei’s announcement that it will reduce volumes. A report published in October by the Helsinki Center for Research on Energy and Clean Air (CREA) found that Taiwan has become the world’s largest importer of the fossil fuel derivative from Russia.
Current State of Naphtha Imports
Ciaran Tyler, senior naphtha research analyst at Brussels-based commodity data analytics firm Kpler, said Taiwan’s imports of Russian-origin naphtha have not declined significantly, although the country has said it will not renew contracts to buy the product. Kpler data shows that naphtha volumes imported from Russia by Formosa Petrochemical Corporation – the Taiwanese company almost entirely responsible for the surge in naphtha imports – remained stable in November and December.
Impact of Existing Contracts
"Formosa will not extend purchasing for new fixed-term contracts next year, but fulfilling existing contracts is something they don’t seem to have shied away from," Tyler said. He expects import volumes to decline rapidly in early 2026 as annual and quarterly contracts expire. Luke Wickenden, one of the co-authors of the CREA report, told that he was convinced Formosa was serious about its commitment to withdraw.
Taiwan’s Energy Mix
The CREA report found that Taiwan’s imports of Russian naphtha increased six-fold in the first six months of 2025 compared to 2022. Naphtha is needed to produce chemicals needed for high-tech manufacturing, including semiconductor manufacturing. “It’s essentially a base raw material for making all kinds of chemicals that fund the semiconductor industry,” Wickenden said. “It’s an incredibly important chemical.”
Curbing Naphtha Imports
After the report was published, Formosa issued a statement as a private company, it is not prevented from buying Russian naphtha, but requires traders and suppliers to “comply with international sanctions.” It claimed that it had purchased larger shares of Russian naphtha due to “global market conditions.” Taiwan’s Economy Minister Kung Ming-hsin subsequently told Taiwanese media that Formosa’s contracts for Russian naphtha would soon expire and that the company had "agreed not to purchase Russian naphtha in the future."
Coal in the Mix
Although Taiwan has taken swift action to reduce Russian imports and reduce the risk of dependence, the situation has shone a light on the island’s energy mix. Currently, more than 80% of Taiwan’s energy is powered by imported coal and liquefied natural gas (LNG), although the share of coal is gradually decreasing and renewable energy is taking part of the share. Around 97% of Taiwan’s energy is imported. Jheng Ruei-He said Taiwan’s reliance on fuel imports means it faces "significant geopolitical risks."
Refined Products Continue to be the Focus
Aside from coal, Taiwan still imports small amounts of LNG from Russia, but overall it does not currently appear vulnerable to coercion from Moscow or Beijing. Jheng Ruei-He noted that energy diversity is a core principle of the government, but added that it is important to remember that costs will always mean that there is a chance that Russia will be represented in some form in Taiwan’s energy mix. Wickenden believes that while Taiwan is a positive example of how to restrict energy flows from Russia, the European Union must maintain and increase pressure, particularly on refined Russian oil products.
EU Sanctions on Refined Exports
The EU recently stepped up sanctions on refined exports from Russia. It has called on traders and operators to introduce due diligence procedures to limit the risks of importing products made from Russian crude oil into the EU. The bloc has placed particular emphasis on goods from Turkey, China, and India as these countries have recently purchased high volumes of Russian crude. Wickenden believes the language and legislation surrounding direct imports of refined products, such as those targeted in Taiwan, are still not strict enough. “At the moment only the importers of crude oil and then the exporters of refined products, i.e. the EU countries, are being scrutinized,” he said.
