Commodity vector: Philippines is considering a new purchase of oil from Russia in the summer

Manila may buy the next shipment of oil from Russia in June, the Philippine ambassador to Moscow, Igor Bailen, told Izvestia. According to him, the Philippines had previously bought 2.5 million tons of Russian raw materials, which should be enough until June. The country is also interested in contacts with suppliers from Russia in the long term, the ambassador stressed. Experts believe that the United States may once again extend the permit for the purchase of our oil amid difficulties in negotiations with Iran. Vietnam, Indonesia, Thailand and Sri Lanka are also interested in energy supplies from Russia.

Philippines to continue importing oil from Russia

The Philippines plans to import a new batch of Russian oil in June, and the country's national oil company, Petron, is negotiating with suppliers from Russia. Igor Bailen, the Philippine ambassador to Moscow, told Izvestia about this.

— In my opinion, by the end of March we had about 2.5 million barrels with the possibility of buying more Russian oil. Since, according to my data, we have bought 2.5 million barrels, this will be enough until June. And, of course, depending on the situation, we will have to buy more. It is our national oil company Petron that maintains contacts with the Russians regarding the purchase of this oil," the diplomat said.

The Philippines is interested in maintaining contacts with Russian oil companies in the long term, Igor Bailen stressed.

— We are a friendly country towards Russia. We are also addressing some of these financial issues. But I think it would be in the interests of the Philippines to maintain contacts with Russian oil suppliers in the long term," said the Philippine Ambassador to the Russian Federation.

Earlier it became known that the Philippine company Petron bought 2.48 million barrels of Russian oil for the first time in five years. According to local media, this should be enough for 45 days. The Philippines provides all its needs for these raw materials through imports from the Middle East, so Iran's conflict with the United States and Israel has severely damaged supplies to the republic, whose authorities had to declare a state of emergency.

If the terms of supply remain attractive to the Philippines and the issues related to payments and insurance are resolved, then Russia is likely to continue supplies, and a new deal may indeed be concluded by June. Manila has shown interest in continuing these shipments, Sergei Tolkachev, a professor at the Financial University, told Izvestia.

However, the continuation of supplies largely depends on whether the United States extends the exemption from sanctions for Russian hydrocarbons. In March, the U.S. Treasury Department allowed the sale of sanctioned oil from the Russian Federation shipped to ships for a month, and then extended this rule until May 16. Kirill Dmitriev, Special Representative of the President of Russia for investment and economic cooperation with foreign countries, head of the Russian Direct Investment Fund, said that these measures affected a total of 200 million barrels of oil.

US Treasury Secretary Scott Bessent noted that Washington no longer intends to extend the permit. At the same time, the American media write: Donald Trump is planning a long-term blockade of Iran, which creates risks of rising oil prices. It was precisely to stabilize the cost of energy resources that Washington had previously introduced exceptions to sanctions. Therefore, the possibility of extending the license for the sale of Russian oil remains.

Economist Evgeny Sumarokov told Izvestia that the postponement was extended for 30 days after pressure on Washington from Asian countries such as the Philippines and India. The US decision on further prolongation may affect the desire of many Asian countries to continue buying Russian oil.

Go into supply: Philippines enters into purchases of Russian oil

How has the demand for our resources increased in Asia and which other countries are waiting in line for raw materials from the Russian Federation

What other Asian countries can buy oil from Russia

India and China import most of the Russian oil. After the United States eased sanctions in March, a number of other Asian countries became interested in supplies. Due to the crisis in the Strait of Hormuz, it has become more difficult to deliver Middle Eastern oil, while Russia has the opportunity to send it to both Europe and Asia.

Thai authorities are preparing for negotiations on the purchase of oil from Russia, said the Deputy Prime Minister and Minister of Transport of the kingdom of Phiphat Ratchakit Prakan. The issue of sending resources to Sri Lanka is being worked out, Russian Deputy Foreign Minister Andrei Rudenko said earlier. Following the meeting of the leaders of the countries Vladimir Putin and Prabowo Subianto on April 13, Russia and Indonesia agreed to supply up to 150 million barrels of oil to the Asian republic. According to media reports, Vietnam is also negotiating.

South Korea and Japan, which have imposed sanctions against Russia, are also turning to Moscow. For example, Seoul bought 27,000 tons of Russian naphtha in March. There is an understanding in South Korean expert circles that Russia is a reliable supplier of energy resources to its traditional partners, Russian Ambassador to Seoul Georgy Zinoviev told Izvestia earlier. The issue of lifting economic sanctions against Russia was raised at a meeting of Japan's ruling Liberal Democratic Party, the media reported. In addition, last year Tokyo increased purchases of Russian LNG, the purchase of which was not subject to Japanese restrictions after 2022.

Sergey Tolkachev believes that in order to conclude long-term contracts with Russia, the countries of Southeast Asia must have high demand for energy resources, as well as infrastructure for its reception — refineries capable of processing Russian type of oil, and gas transportation routes.

— Vietnam has a growing economy, a need for energy, and historically good relations with Russia. He may potentially be interested in both oil and gas. Indonesia is a major energy consumer that may be looking for alternative sources of supply. Malaysia and Thailand also have growing energy needs and may be open to new suppliers if Russia's offers are competitive, the expert stressed.

According to him, Russia can offer not only favorable prices, but also investments in energy infrastructure in exchange for long-term contracts.

— In June, a joint anniversary summit of Russia and ASEAN will be held in Kazan, dedicated to the 35th anniversary of relations. Perhaps the signing of new contracts and agreements in the energy sector will be timed to coincide with this event," Sumarokov believes.

Previously, Moscow had focused on Europe for long-term energy supplies. However, now Russia can stop gas supplies to European markets and move to more promising ones, Vladimir Putin said earlier. He stressed that the Russian Federation will continue to supply reliable contractors. The interest of Asian countries shows that Russian oil will definitely have buyers.