Sri Lanka explores Russian oil purchases after US waiver on sanctions

Sri Lanka
By Editor_1
Sri Lanka’s Foreign Minister Vijitha Herath and senior officials in discussion with Russian Ambassador to Colombo Levan S. Dzhagaryan - MOFA

COLOMBO – Sri Lanka has begun discussions on the possibility of purchasing Russian oil following a temporary easing of US sanctions on certain Russian fuel shipments, the Foreign Ministry said.

The move was discussed during a meeting between Sri Lanka’s Foreign Minister Vijitha Herath and Russian Ambassador to Colombo Levan S. Dzhagaryan, according to a statement from the ministry.

“As another step to maintain Sri Lanka’s fuel supply, Minister Vijitha Herath discussed the possibility of purchasing Russian fuel with the Russian Ambassador,” the ministry said.

The ambassador agreed to immediately convey Sri Lanka’s request to the Russian government and coordinate with relevant institutions to explore the arrangements needed for a potential supply.

The discussions come after the United States issued a 30-day waiver allowing countries to purchase sanctioned Russian oil and petroleum products currently stranded at sea, in a move aimed at stabilizing global energy markets disrupted by tensions linked to the conflict involving Iran, the United States and Israel.

Sri Lanka’s interest in Russian crude also comes as the island nation has recently increased domestic fuel prices amid concerns over supply constraints and rising global uncertainty.

According to the ministry, the Russian envoy said Moscow would extend support to Sri Lanka whenever required.

Historically, Sri Lanka relied heavily on Iranian light crude prior to 2012, which was well-suited for processing at the country’s ageing refinery. However, the island was forced to halt imports from Iran after the United States sanctions on Iran oil exports.

Following the sanctions, Sri Lanka shifted to alternative crude sources, including Murban crude from the United Arab Emirates, while also increasing its reliance on refined petroleum imports.

Global oil markets have come under renewed strain following the escalation of conflict in the Middle East, with disruptions to shipping routes and energy supplies.

-ENCL

Editor_1
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