Who's propping up Russian oil?

Summary

Podcast Summary: The Indicator from Planet Money

Episode: Who's propping up Russian oil?
Date: November 5, 2025
Hosts: Darian Woods, Jackie Northam
Guest: Isaac Levi (Center for Research, Energy and Clean Air)

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Episode Overview

This episode delves into the complexity and contradictions of global sanctions on Russia, especially those aimed at the Russian energy sector. Despite over 5,000 sanctions imposed after the invasion of Ukraine, Russian oil and gas exports continue to flow—often to countries that publicly condemn the war or support Ukraine. The episode spotlights how nations, including U.S. allies and even the U.S. itself, are still propping up Russian revenue streams, often through loopholes and selective enforcement of sanctions.

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Key Discussion Points & Insights

1. The Sanctions Landscape

• Sanctions Overview: Since Russia’s invasion of Ukraine, the U.S. and allies have imposed over 5,000 sanctions, targeting everything from energy exports to oligarchs and financial institutions ([00:26]).
• Intended Effect: These measures aimed to cripple the Kremlin’s ability to finance the war ([00:34]).
• Observed Outcome: While Russia’s economy is showing strain (higher taxes, interest rates, depleted reserves), the sanctions have not stopped the war ([00:59]).

2. The "Double Game": Allies Buying Russian Oil

• Hypocrisy Highlighted: Some countries present themselves as anti-war yet buy discounted Russian oil and gas, indirectly funding the war they publicly oppose ([01:11]).
• Quote:

  "You have countries professing support for Ukraine but then turn a blind eye when it comes to things like buying Russian oil and gas." – Jackie Northam [01:11]

3. Case Study: Taiwan’s Contradictions

• Unexpected Player: Taiwan, despite facing a threat from China similar to Ukraine’s from Russia, is the world’s largest importer of Russian naphtha—a critical material for its massive semiconductor industry ([03:15]-[03:54]).
• Naphtha’s Role:

  "Naphtha is an oil product that's used for really everything from paint thinner to jet fuel. And it's also a critical element in the production of semiconductors." – Jackie Northam [03:43]

• Report & Findings:
  • NGOs, including the Center for Research, Energy and Clean Air, report that Taiwan hasn’t sanctioned Russian fossil fuels ([04:04]-[04:37]).
  • While the Taiwanese government stopped direct imports, private companies, especially Formosa Petrochemical Corporation, continued—comprising 90% of imports, which have increased sixfold since the war began, totaling around $4.9 billion ([05:00]-[05:41]).
  • An estimated $2 billion of that is direct revenue for the Kremlin, potentially funding destructive military operations ([05:41]-[05:57]).
• Security Concerns:
  • Taiwan’s reliance on Russian naphtha is seen as a vulnerability, especially considering Russia’s alliance with China ([06:09]).
  • Concerns exist that Beijing could pressure Moscow to cut Taiwan off, with serious economic and security implications ([06:09]).

4. Loopholes and Rationalizations

• Profit Motive:

  “When we see that there are countries or regions that don't have sanctions or any bans, legal measures…they will just do whatever is in their best interest to maximize their profits.” – Isaac Levi [05:00]

• Discounted Oil: Russia offers about a 5% discount to Taiwan compared to its next largest supplier (the UAE), incentivizing continued trade ([06:34]).
• Aid vs. Imports: Taiwan’s financial support to Ukraine (~$100 million) pales in comparison to its multi-billion-dollar purchases from Russia ([06:34]).

5. Broader Global Trends

• Europe: The European Union has reduced Russian energy imports except for Hungary and Slovakia, which have increased them since the war ([07:03]-[07:27]).

• Other Allies: Turkey and India remain major buyers of Russian oil. The U.S., under President Trump, has imposed tariffs on India for its extensive purchases but spared other allies ([07:37]-[07:55]).

  "It is striking that Trump singled out India for its tariffs while sparing Turkey and Hungary." – Darian Woods [07:55]

• U.S. Involvement:
  • Despite sanctions, the U.S. buys over a billion dollars in refined products, such as gasoline, fertilizers, and jet fuel, made from Russian crude processed in third countries ([08:05]-[08:14]).

  "The US is still dependent on Russian energy as well." – Jackie Northam [08:14]

6. Recent Developments and Policy Shifts

• Taiwan’s Response: Following reports on naphtha’s strategic importance, Taiwanese officials stated that Formosa Petrochemical’s contracts for Russian naphtha are expiring, with no future renewals planned ([08:42]).
• European Goals: Europe aims to end Russian energy imports by 2027, though Hungary and Slovakia resist ([08:59]).
• U.S. Position: No declared plan to restrict imports of Russian energy-derived products ([09:09]).

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Notable Quotes & Memorable Moments

• On Policy Contradictions:

  "There is some hypocrisy, although I would say Taiwan isn't alone in this." – Isaac Levi [06:58]

• On the Scale of Funding:

  "It's enough money for the Russian state to pay for 170,000 Gibera drones that raid havoc and cause huge amount of destruction and death in Ukraine each day." – Isaac Levi [05:46]

• On Security Implications:

  “If Beijing puts pressure on the Kremlin to halt all shipments of naphtha... it could create real economic or national security concerns.” – Jackie Northam [06:09]

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Timestamps for Key Segments

• [00:26] — Sanctions overview and intended effects
• [01:11] — Highlighting hypocrisy and ongoing Russian exports
• [03:15] — Taiwan’s role and reliance on Russian naphtha
• [04:37] — Isaac Levi introduces NGO report findings
• [05:41] — Quantifying Russia’s revenue from Taiwan imports
• [06:09] — Discussion of security vulnerabilities for Taiwan
• [07:03] — European and other allies’ double game
• [08:05] — U.S. purchases of Russian-refined petroleum
• [08:42] — Taiwanese government signals policy change
• [08:59] — Europe’s end-goal for Russian energy
• [09:09] — Current U.S. stance

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Conclusion

This episode unpacks the tangled web of international sanctions, self-interest, and realpolitik undermining efforts to cut off Russian revenue. Taiwan, Europe, Turkey, India, and even the U.S. remain implicated in complex supply chains that funnel money to Russia despite public posturing. The episode underscores how economic incentives often outweigh diplomatic rhetoric, with significant consequences for the future of the conflict in Ukraine and global energy security.

Transcript

[A]

NPR this is the indicator from Planet Money. I'm Darian woods, and today I'm joined by NPR's international affairs correspondent, Jackie Northam.

[B]

Hey, Darian, Good to be here.

[A]

Great to have you, too. And today we're going to talk about sanctions, specifically sanctions against Russia.

[B]

And there are a lot of them. The US and many of its allies have slapped more than 5,000 sanctions on Russia since it invaded Ukraine.

[A]

And the breadth of these sanctions is pretty stunning. They're targeting everything from Russia's energy to its oligarchs. All of this is to try to make it more difficult for the Kremlin to finance the war.

[B]

Yeah, and they have had an effect. We're seeing cracks in Russia's economy and President Vladimir Putin has had to jack up taxes and interest rates, and hundreds of billions of dollars have been drained from Russia's foreign currency reserv.

[A]

And yet here we are three and a half years later and the war in Ukraine is still grinding on. And it turns out that those thousands of sanctions have not brought the Kremlin to its knees.

[B]

Not at all. You know, that's because there's a lot of hypocrisy out there. You have countries professing support for Ukraine but then turn a blind eye when it comes to things like buying Russian oil and gas.

[A]

Yeah. And that Russian oil and gas is going for very cheap these days. It's very attractive for the buyers.

[B]

It sure is. So today on the show, which countries are playing both sides of the fence? How are they getting around the sanctions and what it means for the ongoing conflict?

[A]

And spoiler alert, not only are these countries US allies, the US is benefiting, too.

[C]

This message comes from AT&T. America's first network is also its fastest and most reliable based on RootMetrics. United States Root Score Report 1H2025 tested with best commercially available smartphones on three national mobile networks across all available network types. Your experiences may vary. Rootmetrics rankings are not an endorsement of AT&T. When you compare, there's no comparison. AT and T support for NPR and the following message come from Edward Jones. A rich life isn't always a straight line. Unexpected turns can bring new possibilities. With a hundred years of experience navigating ups and downs, Edward Jones can help guide you. Let's find your rich together. EDWARD Jones, Member, SIPC this message comes from Capital One.

[B]

Banking with Capital One helps you keep more money in your wallet. With no fees or minimums on checking accounts. What's in your wallet? Terms apply. See capitalone.combank for details. Capital One, NA Member, FDIC. So, Darian, there are plenty of countries we could point to that are playing a double game when it comes to Russian sanctions.

[A]

Right? Providing diplomatic and financial support for Ukraine while at the same time buying Russian oil and gas. This helps finance the Kremlin's war machine.

[B]

It does. But one of the things I find really interesting about this story is how this is playing out in Taiwan.

[A]

Taiwan, you would think it would be fully on board with sanctions. You know, it faces a similar situation to Ukraine. It's next door to a huge, powerful authoritarian state that wants to grab back territory they think is theirs.

[B]

Right. But here's the thing. As of now, Taiwan has become the world's largest importer of Russian naphtha. Have you heard of naphtha, Darian?

[A]

I actually hadn't until you pitched this story. Now I know a lot about it.

[B]

Good. Okay, so now you know. Naphtha is an oil product that's used for really everything from paint thinner to jet fuel. And it's also a critical element in the production of semiconductors.

[A]

And as we know, Taiwan is a major semiconductor manufacturing hub. It's the home of the world's largest chip builder, tsmc.

[B]

Exactly. And we found out about Taiwan's naphtha imports from a report that came out recently. And it looked at how Taiwan is playing this double game when it comes to sanctions on Russia. It was written by a group of NGOs who carefully charted what Taiwan is doing.

[D]

So I guess we are nerds or experts, depending on how you look at it, who spend a lot of our time tracking Russian fossil fuel export revenues.

[B]

That's Isaac Levi and he's with the Finnish based Center for Research, Energy and Clean Air. And it's one of the groups that wrote the report on Taiwan and how it's handling sanctions on Russia.

[D]

They see themselves kind of as an ally to Ukraine. They provide financial aid to Ukraine and they've imposed some sanctions, sanctions, although limited, on Russia.

[B]

Now, most of those sanctions are on high tech goods, but Taiwan didn't place any restrictions on buying Russian fossil fuels. So for oil and gas, and Isaac says what happened next was predictable.

[D]

When we see that there are countries or regions that don't have sanctions or any bans, legal measures to prohibit companies buying Russian fossil fuels, they will just do whatever is in their best interest to maximize their profits.

[B]

Now, according to Isaacs Group, the Taiwanese government did stop importing naphtha over the past couple of years, but the private sector continues to buy it. And one company in Particular, the Formosa Petrochemical Corporation. And its imports in naphtha account for about 90% of the island's total imports. In fact, Isaac says those purchases have gone up sixfold since the start of the war. It's now around $4.9 billion.

[A]

And close to 2 billion of those funds are going straight into the Kremlin's coffers.

[D]

It's enough money for the Russian state to pay for 170,000 Gibera drones that raid havoc and cause huge amount of destruction and death in Ukraine each day.

[A]

It is curious that Taiwan is comfortable depending on Russia for naphtha, especially as Moscow and Beijing have close ties and China claims sovereignty over Taiwan.

[B]

That's right. And that's not lost on members of Taiwan's government. There are concerns about vulnerability. If, say, Beijing puts pressure on the Kremlin to halt all shipments of naphtha or even the small amount of coal it gets from Russia, it could create real economic or national security concerns.

[A]

Ok. But the other side of the equation is that for the Formosa Petrochemical Company, it's getting a pretty good deal on Nat, though.

[B]

It sure is. Isaac says Russia is giving about a 5% discount on average from the next biggest supplier, which is the United Arab Emirates. And, you know, that may not sound like a lot, but Taiwan is forking over billions of dollars for Russian naphtha, while its financial support to Ukraine is just around $100 million. And that's according to the Central European Institute of Asian Studies.

[D]

So there is some hypocrisy, although I would say Taiwan isn't alone in this.

[A]

Yeah, that is true. We've been hearing President Trump recently demanding Europe and NATO allies stop buying oil and gas from Russia. And the has drastically reduced its imports. Since the war began, it had relied heavily on Russian energy, but now imports have plummeted. But the main holdouts are Hungary and Slovakia, and they've actually increased imports since the war began.

[B]

Yeah, and outside of the eu, there are other US Allies that have developed voracious appetites for cheap Russian oil. And Turkey is a major buyer.

[A]

And let's not forget India. Trump slapped a 25% tariff on imports of Indian goods because of its purchases of Russian oil. That was on top of a 25% tariff it already had on place. Now, it is striking that Trump singled out India for its tariffs while sparing Turkey and Hungary.

[B]

Well, you know, Darian, there's been a lot of speculation that Trump was frustrated by India's Prime Minister Narendra Modi's reluctance to credit him for brokering the India Pakistan ceasefire.

[A]

The US could also be accused of hypocrisy, though it's still buying refined oil products made from Russian crude in countries like India.

[B]

That's right. Isaac says the US Spends over a billion dollars every year on refined products such as gasoline and fertilizers and jet fuel from Russia that have been processed in other countries. So the US Is still dependent on Russian energy as well.

[A]

So back to Taiwan. The Trump administration hasn't commented on the naphtha imports so far, but Taiwanese government ministers have voiced concerns that it represents a security concern.

[B]

They did, and here's an update since I started reporting the story. After Isaac's report on naphtha's importance came out, the government said the Formosa Petrochemical Corporation's contracts for Russian naphtha were about to expire and that the company would stop buying it in the future.

[A]

For Europe's part, its goal is to end Russian imports by 2027, although Hungary and Slovakia seem to be dragging their feet.

[B]

They are. Meanwhile, you know, Darian, here in the US we're not hearing of any plans so far to limit Russian energy imports here.

[A]

Jackie, thank you so much for dropping by with this fascinating piece on geoeconomics. Really appreciate it.

[B]

Thanks very much, Darian.

[A]

This episode was produced by Julia Ritchie with engineering by Kwesi Lee. It was fact checked by Cierra Juarez. Kate Concannon is the show's editor, and the indicator is a production of NPR.

[B]

Foreign.

[C]

This message comes from Bombas. You need better socks and slippers and underwear because you should love what you wear every day. One purchased equals one donated. Go to bombus.com NPR and use code NPR for 20% off. Support for NPR and the following message come from Warby Parker, the One Stop Shop for all your vision needs. They offer expertly crafted prescription eyewear plus contacts, eye exams and more. For everything you need to see, visit your nearest Warby Parker store or head to warbyparker.com this message comes from Bombus. You need better socks and slippers and underwear because you should love what you wear every day. One purchased equals one donated. Go to bombas.com NPR and use code NPR for 20% off.