Russia very open to oil trade deal with PH - Marcos

MANILA, Philippines — The Philippines has yet to secure an energy cooperation deal with Russia but noted that the Russian government is “very open” to proposals aimed at expanding engagement in petroleum products,  President Ferdinand R. Marcos Jr. said on Friday.

Marcos said this in a sit-down interview with reporters in Kazan, Russia, at the conclusion of his two-day working visit for the Association of Southeast Asian Nations-Russia Commemorative Summit.

READ: PH gains new access to Russian oil as price drops continue

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“In terms of energy, there have been no firm agreements but merely an understanding that we will continue to develop what we have already started in crisis, which we are hoping to come to an end soon,” Marcos said.

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“I can say that President Putin, the Russian Federation government, was very open to any kind of suggestion that we do increase that engagement and we look further into getting our supplies of petroleum products from Russia,” he added.

According to Marcos, the Philippines has been sourcing petroleum products from Russia on an “ad hoc basis” since the onset of the global oil crisis triggered by the Middle East conflict in February.

“There was no real system in place; now we are beginning to put that system in place and I think it will be very good for the Philippines to have another assured lifeline of petroleum products,” he said.

Even if war does come to an end, Marcos said the government will continue to look for “non-traditional” partners in terms of the supply of petroleum products.

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The Middle East crisis triggered the closure of the Strait of Hormuz, where roughly 20 percent of the world’s oil and liquefied natural gas imports usually pass through.

Moreover, Marcos said it is also yet to be decided whether the Philippines will regularly source petroleum products from Russia due to “complications” like the need to sign a trade agreement and geopolitical considerations.

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READ: DOE pushing for ‘aggressive’ fuel transition plan

On June 20, Energy Secretary Sharon Garin said the Department of Energy seeks to launch an “aggressive” fuel transition plan meant to reduce the Philippines’ reliance on imported oil.

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According to government data, 97 percent of liquid petroleum products—such as diesel, gasoline and kerosene—are imported from Asian refineries. /gsg