Sri Lanka in Talks to Buy Russian Oil

Colombo, Mar 26 (PTI) Sri Lanka and Russia began talks here on Thursday aimed at buying Russian oil to strengthen bilateral energy cooperation, authorities said.

The talks were headed by the visiting Russian Deputy Energy Minister Roman Marshavin, the Russian Embassy said.

The officials of the state oil entity were hopeful that Sri Lanka would be able to buy refined petroleum from Russia.

Earlier, the Sri Lankan government said talks would be held with India on oil purchases in view of the volatile situation in West Asia due to US military action.

The talks are to be continued between the Russian deputy energy minister and President Anura Kumara Dissanayake to focus on strengthening collaboration between Sri Lanka and Russia, including potential partnerships in fuel supply, energy security and long-term cooperation.

Sri Lanka has rationed fuel supplies and has introduced a four-day working week for the state sector as measures for energy conservation.

The government said continuous fuel supplies are guaranteed till mid-May.

On Thursday, Minister of Foreign Affairs Vijitha Herath held discussions with Russian Ambassador Levan S. Dzhagaryan on the possibility of purchasing Russian fuel to navigate the current energy crisis.


After that, the Russian Embassy in Colombo forwarded Sri Lanka's request to Moscow for consideration by the Russian authorities.

Ceylon Petroleum Corporation (CPC) Chairman DJ Rajakaruna told Daily Mirror the matter is being discussed at the moment. He said that Sri Lanka expects to purchase both crude and refined products required for three months from Russia.

"We hope to make a final decision next week," he said.

Russia has largely shifted its oil exports away from the US dollar, requiring payment primarily in Russian Roubles (RUB) or Chinese Yuan (RMB).

Asked how Sri Lanka will address it, Rajakaruna said, "Everything will be addressed next week."

Earlier, Sri Lanka could not buy oil from Russia due to US sanctions.

The US has loosened sanctions preventing other countries from buying Russian oil and petroleum already loaded on vessels at sea to try to ease the energy supply crunch sparked by the US-Israel war with Iran.

According to figures from the Centre for Research on Energy and Clean Air (CREA), Russia earned an additional 672 million euros in oil sales in the first two weeks of the war on Iran, which began on February 28 when Israel and the US launched strikes on Tehran, killing Ayatollah Ali Khamenei and other senior Iranian officials, as reported by foreign media.