Sources reveal that Sri Lanka has lost the opportunity to import fuel directly from Russia with discounts after the two Russian oil company representatives who visited the country refused to enter into agreements with the Petroleum Corporation last week.
It is said that the Ministry of Energy has taken all possible steps to convince the two Russian company representatives who recently visited the country to enter into these petroleum procurement deals on favourable terms, but those efforts have failed.
These two Russian companies have pointed out to Sri Lanka the inability to supply oil on long-term loans as well as the financial transaction problems of local banks due to Sri Lanka’s declaration of default on its foreign debt.
Another reason for not getting direct support from Russia for fuel is the refusal of foreign banks to open letters of credit (LoC) for purchases from the Russian Federation, the reports added. Thus, Sri Lanka has no other option but to order from third parties who get oil from Russia.
Accordingly, the Petroleum Statutory Corporation has decided that the only way to meet the shortage of crude oil is to import Russian crude oil and other fuels from a third-party company in Dubai.
At present, the corporation has taken steps to import crude oil from a company located in Dubai, which is the supplier of Russian fuel to the country. However, the government has not yet made public how Sri Lanka will pay for the fuel stocks ordered.
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