MOSCOW, March 27 — Asian countries including Vietnam, Thailand, the Philippines, Indonesia and Sri Lanka are lining up to buy Russian oil as the Iran war disrupts supplies, raising the possibility that demand may exceed supply, several sources, including Russia, said.
Since the war in Ukraine prompted European customers — once the biggest buyers of Russian oil and gas — to shun Moscow, India and China have accounted for around 80 per cent of Russian oil exports. Turkey has also been a significant buyer.
In recent weeks, however, a growing number of Asian countries have joined the queue, according to various sources, including media reports and Russian officials.
“Demand is high, particularly from alternative destinations. As a result, a point may come when it becomes difficult to meet additional demand,” Kremlin spokesman Dmitry Peskov said in response to a question about Russian oil demand.
About a fifth of global oil production has effectively been blocked from reaching the market due to the US-Israeli war on Iran, which has halted traffic through the Strait of Hormuz.
Russia has benefited from higher oil prices and a 30-day sanctions waiver from the United States for purchases of Russian oil at sea.
Oil revenues and natural gas sales generate around a quarter of the country’s state funds.
Russia’s ability to boost oil exports is, however, constrained, in part by Ukrainian drone attacks, which have effectively shut down at least 40% of the country’s oil-exporting capacity.
Two tankers for Manila
The Philippines has purchased two of Russia’s Far Eastern ESPO Blend cargoes, totalling about 1.5 million barrels, resuming its Russian oil purchases for the first time in five years, according to LSEG data.
The Sara Sky and Tiger Wings tankers delivered oil to Limay port, where the terminal for the Bataan refinery is located.
Thailand has also held discussions with Russia on potential crude purchases, according to its Deputy Prime Minister Phiphat Ratchakitprakarn.
Several Sri Lankan media outlets have also reported talks on Russian oil supplies to Sri Lanka.
Vietnam’s Prime Minister Pham Minh Chinh visited Moscow this week, asking Russian oil and gas firm Zarubezhneft to increase its investment in Vietnam and to supply crude oil to the Southeast Asian country on a long-term basis.
