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Myanmar to import Russian oil, military says

Junta aims to ease supply concerns and rising fuel prices in the country

by Dubai News
3 years ago
in Top News, World
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Military-ruled Myanmar plans to import Russian gasoline and fuel oil to ease supply concerns and rising prices, a junta spokesperson said, the latest developing country to do so, amidst a global energy crisis.

The Southeast Asian country has maintained friendly ties with Russia, even as both remain under a raft of sanctions from Western countries — Myanmar for a military coup that overthrew an elected government last year, and Russia for its attack on Ukraine, which it calls a “special military operation”.

Russia is seeking new customers for its energy in the region, as its biggest export destination, Europe, will impose an embargo on Russian oil in phases, later this year.

“We have received permission to import petrol from Russia,” military spokesperson Zaw Min Tun said during a news conference on Wednesday, adding that it was favoured for its “quality and low cost”.

Fuel oil shipments are due to start arriving from September, according to the media.

Zaw Min Tun added that junta chief Min Aung Hlaing discussed oil and gas during a trip to Russia last month. The country now imports its fuel through Singapore.

Myanmar would consider joint oil exploration with Russia and China, he said.

The military has set up a Russian Oil Purchasing Committee headed by a close ally of Min Aung Hlaing to oversee the buying, importing, and transport of fuel at reasonable prices based on Myanmar’s needs, according to a statement published in a state newspaper on Wednesday.

In addition to political turmoil and civil unrest, Myanmar has been hit hard by high fuel prices and power cuts, prompting its military leadership to turn to imports of fuel oil that can be used in power plants.

Petrol prices have surged about 350 per cent since the coup in February last year to about 2,300-2,700 kyat (about $1) per litre.

In the past week, petrol stations have shut down in various parts of the country because of shortages, media reports say.

Russia is also a major supplier of weapons to the Myanmar military.

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