(SeaPRwire) – The island nation’s transport minister has announced that the first shipments of Russian crude oil are anticipated to arrive in mid-April.
Sri Lanka has finalized a deal with Moscow to buy crude oil, according to the country’s transport minister, Bimal Rathnayake, as it confronts an energy crisis exacerbated by the Middle East conflict.
Speaking to TASS on Monday, Rathnayake stated that “energy is our priority today,” noting that the US-Israeli war on Iran has caused a disruption in supplies to Sri Lanka.
“Russia’s deputy energy minister [Andrey Rudenko] was in Sri Lanka a few days ago. The deputy foreign minister also visited. They concluded an agreement on oil supplies to the country,” Rathnayake informed the news agency.
He further mentioned that the initial crude deliveries from Russia are scheduled for mid-April.
“Technical work is currently ongoing at the company level, and financial matters are under discussion, including how to conduct transactions. However, at the political level, nearly everything is finalized,” the minister said.
Rathnayake also pointed out that while Sri Lanka sends tea to Russia, a reliable “logistic system” is crucial for importing crude.
Last week, a senior official from Ceylon Petroleum Corporation (Ceypetco), Mayura Neththikumarage, said the island has just two locations capable of offloading fuel. Ceypetco is Sri Lanka’s sole refiner.
Neththikumarage also stated that fuel shipments for April and May are already secured and that prices could see a slight decrease in June.
According to a Bloomberg report, the South Asian nation sources the majority of its crude from the United Arab Emirates (UAE), while refined petroleum products are imported from India and Singapore.
In March, Sri Lanka took delivery of 38,000 tons of fuel from India.
To manage the supply disruption, the government in Colombo has increased fuel prices and introduced rationing measures.
Following the outbreak of the Middle East conflict, Russia indicated its readiness to become a major energy partner for South Asian nations, such as India, Pakistan, Bangladesh, and Sri Lanka.
Bilateral trade between Russia and Sri Lanka reached $700 million in 2024.
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