Sri Lanka, on Saturday, received Russian oil to resume operations at the country's only refinery, according to the Energy Minister, knowing that Russian oil may soon be subject to a European embargo.
Sri Lanka is experiencing the worst economic crisis since its independence in 1948, with severe shortages of basic commodities and frequent power cuts causing widespread suffering.
The state-run Ceylon Petroleum Corporation's refinery was shut down in March following a foreign exchange crisis in Sri Lanka, leaving the government unable to finance crude oil imports.
Energy Minister Kanchana Wijesekera said the Russian crude cargo had been stuck off Colombo for a month, as Sri Lanka had not been able to raise $75 million to pay for it.
Colombo is in talks with Moscow to arrange direct supplies of crude, coal, diesel and fuel despite US sanctions on Russian banks and diplomatic protest over Russia's invasion of Ukraine.
"I submitted an official request to the Russian ambassador for direct supplies of Russian oil," Wijesekera told reporters in Colombo.
"Crude oil alone will not suffice, we also need refined (oil) products," he added.
About 90,000 tons of Siberian light crude will be sent to Sri Lanka's refinery after the shipment was secured by the Dubai-based broker Coral Energy.
Sri Lanka's energy minister noted that Siberian crude was not the best for Ceylon Petroleum Corporation's refinery, which works better with Iranian light crude, but no other supplier was willing to extend the credit line.
European Union leaders meet on Monday to discuss a new package of sanctions against Russia over its invasion of Ukraine, including an embargo on Russian oil.
The Source
- Agencies