News Desk
MOSCOW: Asian countries including Vietnam, Thailand, the Philippines, Indonesia, and Sri Lanka are turning to Russian oil as the war in Iran disrupts global supplies, raising concerns that demand may soon outstrip availability, several sources including Russian officials said.
Since the war in Ukraine prompted European customers—once the largest buyers of Russian oil and gas—to shun Moscow, India and China have accounted for roughly 80 percent of Russian oil exports, with Turkey also emerging as a significant buyer.
In recent weeks, however, a growing number of Asian nations have signaled their interest, according to multiple reports and Russian sources. “Demand is high, particularly for 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 questions about Russian oil.
The situation has been intensified by the US-Israeli conflict with Iran, which has effectively blocked a fifth of global oil production from reaching markets by halting traffic through the Strait of Hormuz.
Russia has benefited from elevated oil prices and a 30-day sanctions waiver from the United States for purchases of Russian oil at sea. Oil and gas revenues together account for around a quarter of the country’s state budget.
Despite this, Russia’s ability to expand exports remains constrained, partly due to Ukrainian drone attacks that have forced the shutdown of at least 40 percent of the country’s oil-exporting capacity. The Philippines has resumed Russian oil purchases for the first time in five years, taking delivery of two far-eastern ESPO Blend cargoes of about 1.5 million barrels, according to LSEG data.
