Russia says US$ 300M credit line being considered


The Russian Foreign Ministry said, Sri Lanka’s request for a US$ 300 million credit line from Moscow for crude oil, gas, and coal is being considered.

When contacted, the Spokesperson for the Russian Embassy in Sri Lanka said, the request had reached the Russian Foreign Ministry and that it was being considered.

On 26 May, the Russian Foreign Ministry said Russia had received an appeal from Sri Lanka for help in overcoming the energy crisis.

Commenting on the appeals to Russian news agency Ria.Ru, the Russian Foreign Ministry indicated “We can confirm that such appeals were indeed received by the Government of the Russian Federation and the Russian Embassy in Sri Lanka and the issues of its provision are under consideration.”

Sri Lanka’s Envoy in Moscow, Prof. Janitha Liyanage, contacted the Russian Foreign Ministry in March 2021, requesting a US$ 300 million credit line to purchase crude oil, gas, and coal.

“We have requested a credit line from the Russian Government through the Sri Lankan Foreign Minister to purchase crude oil, gas, and coal from Russia,” she said at the time. According to the Ambassador, Russia previously offered the country a US$ 500 million credit line.

Also, in April, the Energy Minister announced that Sri Lanka had paid US$ 26 million to SUEK AG’s Singapore unit for two Russian shipments carrying a total of about 120,000 MT of Russian coal and crude oil that arrived between January and April of this year. On 25 April, the vessel Nissos Delos, a Russian tanker carrying 89,000 MT of crude oil and ordered for emergency purchases, arrived in Colombo.

The Ministry of Power invited bids for 325,000 million MT of coal on 9 September 2021, and there were 13 bidders, with SUEK AG being chosen by the evaluation committee.

With the arrival of crude oil, the Sapugaskanda Oil Refinery’s kerosene demand has been fully met, the Government said on Friday (27).

Due to a crude oil shortage, the refinery was forced to close on 20 March. According to the Minister of Energy, the refinery will begin operations next week.

By Sulochana Ramiah Mohan