Choi Young-geon, left, finance attache at the Korean Embassy in U.S., and Kim Tae-yeon, assistant finance attache at the embassy / Courtesy of Ministry of Economy and Finance
A finance ministry official has been recommended for a government award after securing U.S. assurances that allowed a recent Russian petrochemical shipment to proceed without triggering secondary sanctions, officials said Tuesday.
According to the Ministry of Economy and Finance, Choi Young-geon, a finance attache at the Korean Embassy in Washington, has been nominated for an internal award.
Choi played a key role in securing U.S. assurances that enabled LG Chem to import 27,000 tons of Russian naphtha in March, as Korea turned to alternative supplies following disruptions to shipments through the Strait of Hormuz amid the Iran war.
The U.S. Treasury's Office of Foreign Assets Control generally prohibits transactions involving Russian oil, but issued a 30-day waiver on March 12 allowing limited purchases of Russian oil and petroleum products amid supply concerns.
LG Chem subsequently signed a contract to import the naphtha shipment.
However, uncertainties remained over payment methods due to the risk of potential secondary sanctions.
Intermediary banks handling dollar transactions refused to process the payments.
Alternative payment options using currencies such as the Chinese yuan, Russian ruble and United Arab Emirates dirham were considered, but Korean banks were reluctant due to concerns over possible U.S. secondary sanctions.
Choi, along with Kim Tae-yeon, assistant finance attache, worked to obtain clear assurances from U.S. authorities that the transaction would not trigger sanctions.
Source: Korea Times News
