Taiwan has emerged as the fifth-largest buyer of Russian coal, raising concerns among environmental and international organizations. Taiwan’s Environmental Rights Foundation, along with the Centre for Research on Energy and Clean Air and civic group Ecodefense, have called for an immediate cessation of coal purchases from Russia to prevent contributing to the revenue funding Russia’s war in Ukraine.
According to a recent report, Taiwan’s reliance on Russian coal surged by 31% last year. The report urged the Taiwanese government to adhere to international economic sanctions against Russia and investigate the clandestine coal shipment channels from Russia.
Formosa Plastics Group and Taiwan Cement Corp were specifically urged to halt their Russian coal purchases. The report highlighted that from the onset of the Ukraine war in February 2022 until May, Taiwan accounted for 5% of Russia’s coal exports, totaling US$3.5 billion in payments. This makes Taiwan the second-highest per capita buyer of Russian coal, after South Korea.
In 2022, 12% of Taiwan’s coal imports came from Russia, increasing by 18% from January to May 2023, indicating a growing energy dependency on Russia since the war began.
“The private sector is primarily responsible for this increase, with Formosa Plastics and Taiwan Cement being significant buyers,” said Sun Hsing-hsuan, a researcher with the foundation. These companies have been flagged by the US and UK for financial cooperation with Russian suppliers linked to President Vladimir Putin’s regime.
Sun warned that Formosa Plastics and Taiwan Cement risk international sanctions and penalties from the US Office of Foreign Assets Control, including the freezing of US bank accounts. Despite previous calls to reduce imports, Formosa Plastics has cited cost advantages for continuing purchases from Russia without presenting a reduction plan.
