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Sri Lanka secures supplies of Russia oil – minister

The first deliveries of Russian crude are expected in mid-April, the island nation’s transport minister has said

Sri Lanka will purchase crude oil from Russia after reaching an agreement with Moscow amid the energy crisis spurred by the Middle East conflict, the island nation’s transport minister, Bimal Rathnayake, has said.

Rathnayake told TASS on Monday that “energy is our priority today,” adding that the US-Israeli war on Iran has triggered a disruption in supplies to Sri Lanka.

“Russia’s deputy energy minister [Andrey Rudenko] visited Sri Lanka a few days ago. The deputy foreign minister has also visited Sri Lanka. They reached an agreement on oil supplies to the country,” Rathnayake told the news agency.

He added that the first crude supplies from Russia are expected in mid-April.

“Technical work is currently underway at the company level, and financial issues are being discussed, how to conduct transactions. But at the political level, almost everything has been done,” the minister said.

Rathnayake added that although Sri Lanka exports tea to Russia, a good “logistic system” is essential for crude imports.

Mayura Neththikumarage, a top Ceylon Petroleum Corporation (Ceypetco) official, said last week that the island nation has only two places where fuel can be unloaded. Ceypetco is the only refiner in Sri Lanka.

Neththikumarage has also indicated that fuel shipments for April and May have been secured and that prices might come down marginally in June.

The South Asian nation gets most of its crude from the United Arab Emirates (UAE), though refined petroleum products are imported from India and Singapore, Bloomberg reported.

In March, Sri Lanka received 38,000 tons of fuel from India.

Colombo has hiked fuel prices and imposed rationing to address the supply disruption.

After the Middle East conflict erupted, Russia expressed willingness to be a key energy partner for South Asian nations, including India, Pakistan, Bangladesh, and Sri Lanka.

Bilateral trade between Russia and Sri Lanka stood at $700 million in 2024.

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