Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 31 May 2022 Author: Grzegorz Kuczyński
Russia Sends More Oil To Asian Countries
As Western nations are imposing sanctions on Russian oil while the EU is seeking to ban Russian crude totally, Moscow is looking for new market opportunities. It targets Asian countries that eagerly buy oil at record discounts.
The country’s sole refinery received crude, enabling its restart for the first time since March amid crippling shortages. The Russian grade of Siberian Light will be processed at Ceylon Petroleum Corp.’s refinery in Sapugaskanda, according to Bloomberg. Sri Lanka is the latest Asian nation to accept Russian crude after Moscow’s invasion of Ukraine prompted sanctions from the West. Most refiners in the U.S. and across Europe have halted purchases from Russia, prompting the cost of Russian oil to plummet, while buying from Asian customers in China and India has surged. The Sapugaskanda refinery is using Siberian Light crude. It is one of several grades of crude that the refinery can process. Sri Lanka is facing a worsening economic crisis that has left its citizens struggling to buy food or oil. The nation has been trying to come up with cash to pay for oil that is now on tankers off its coast as its fuel crunch persists. The case of Sri Lanka does not pinpoint any tendency for Russian oil exports, but it fits into Moscow’s effort to trade with Asian nations amid Western condemnation of the Russian invasion of Ukraine. In April, a record volume of Russian oil arrived in Asian––and not European––countries, with more to come in May. Among the top oil importers in Asia are China and India, but more countries, including Sri Lanka, show interest in purchasing Russian energy.
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