Asian countries, facing internal energy shocks due to the conflict in the Persian Gulf, are turning to Moscow, agreeing to buy millions of barrels of Russian oil since the US temporarily lifted sanctions last month, the Financial Times reports, writes UNN.
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Asian economies are among the most vulnerable to the global energy crisis caused by the US-Israel war in Iran, due to their reliance on oil and gas imports from the Middle East. While India and China have been major buyers of Russian crude since Moscow's full-scale invasion of Ukraine four years ago, other Asian countries have resumed or increased imports of Russian oil in recent days after the lifting of US sanctions on supplies from Russia, the publication writes.
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The Philippines and South Korea have already received shipments of Russian oil and petrochemical products, while Vietnam and Sri Lanka are negotiating with Russian energy companies. Thailand and Indonesia have confirmed their readiness to make purchases, the publication writes.
"These are very desperate countries right now, and they want to make the most of the lifting of US sanctions," said June Go, a senior oil market analyst at Sparta Commodities in Singapore. "Russia is an option out of necessity. If someone offers you oil and you're desperate, how can you refuse?"
Middle Eastern oil accounts for the majority of oil imports for several Asian countries, including the Philippines, Vietnam, Malaysia, Thailand, and Singapore.
The price of Brent crude oil, the international benchmark for oil, rose by 63 percent in March, the highest monthly increase in a decade. On Tuesday, it traded above $118 per barrel, compared to approximately $70 before the war with Iran began.
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The US responded to rising global oil prices last month by issuing a 30-day waiver of sanctions on Russian oil.
According to shipping data company Veson Nautical, China and India already accounted for about 85% of Russian oil exports, taking advantage of discounts on supplies for their refineries.
But New Delhi increased its purchases of Russian oil in response to Washington's softened stance. Indian refineries were buying 1 million barrels of Russian oil per day in February, which doubled to 1.9 million barrels per day by the end of March, according to data provider Kpler.
Some Russian oil destined for markets including China was even diverted to India as New Delhi began paying a nearly 5% premium compared to existing rates, the publication writes.
"India's largest private refinery, Reliance, owned by Asia's richest man Mukesh Ambani, also began importing Russian oil after the easing of US restrictions," the publication writes.
Two tankers with Russian oil arrived in the Philippines last week, the first since November 2021, Kpler reports.
In South Korea, companies have not yet purchased Russian oil, but they have acquired 27,000 tons of Russian naphtha, a petroleum product derived from oil used to produce plastic products.
Meanwhile, officials in Thailand and Indonesia have expressed their openness to buying Russian oil, while Vietnamese company Binh Son Refining and Petrochemical is negotiating with Russian partners. In Sri Lanka, state-owned Ceylon Petroleum Corp told Bloomberg this week that it is in talks with Russian oil companies.
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