Russian crude oil arrives in Philippines after five years

The Philippines received its first shipment of Russian crude oil in five years on Tuesday, as the country scrambles to diversify fuel sources amid deepening supply risks from the Middle East conflict.

Philstar.com reported that the Sierra Leone-flagged tanker Sara Sky docked at the Limay port in Bataan at 2 p.m. on March 24, carrying approximately 100,000 tonnes—roughly 750,000 barrels—of ESPO Blend crude loaded from Russia’s Kozmino port in the Far East, according to shipping data from analytics firms LSEG, Kpler, and OilX.

The cargo is bound for the Bataan refinery, the country’s largest, operated by Petron Corporation. Industry traders confirmed the shipment’s destination, though Petron was not immediately available for comment due to a national holiday.

The delivery marks a resumption of Philippine purchases of Russian crude after a gap that began in 2022, when Western nations imposed sweeping sanctions on Russian oil trade following Moscow’s military actions in Ukraine. The Philippines last imported Russian oil in 2021, when it purchased a cargo of Sakhalin’s Sokol grade, according to LSEG and Kpler data.

The shipment was made possible by a 30-day sanctions waiver issued by the United States, which expires on April 11. The waiver allows countries to purchase Russian oil cargoes already in transit. US Treasury Secretary Scott Bessent said the measure was intended to stabilize global energy markets destabilized by the war involving Iran.

Energy Secretary Sharon Garin earlier confirmed that Manila had approached Russia for possible oil importation but gave no details on potential volumes or duration. She said the government, through the state-run Philippine National Oil Company (PNOC), has contacted Russian oil companies and is awaiting Moscow’s response.

Garin also assured the public that the Philippines’ existing contracts with China are not affected by a ban on refined fuel exports. Philippine companies maintain long-term oil export contracts with China, she said. In 2025, the Philippines imported 1.8 billion litres of diesel from China, accounting for 28 percent of local industry demand.

The energy secretary said the Philippines has sufficient fuel inventory until April and is in talks with oil exporters in Thailand, Japan, and Singapore to ensure adequate supply as global markets remain volatile.

President Ferdinand Marcos Jr. on Tuesday signed Executive Order No. 110, declaring a state of national energy emergency—the first time a president has exercised such authority under Republic Act 7638 to respond to oil supply disruptions. The declaration enables the government to implement fast-tracked fuel procurement, advance payment for fuel contracts, and measures to secure the movement and availability of fuel and other essential goods affected by rising prices.

The executive order also adopts the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) as the government’s coordinated response framework. An UPLIFT Committee, chaired by Marcos, will oversee its implementation. The emergency declaration is set to run for one year unless otherwise extended or lifted.

The Philippines relies heavily on Middle Eastern oil, with roughly 98 percent of its crude supply sourced from the region. The ongoing conflict involving the United States and Israel against Iran has disrupted shipping routes through the Strait of Hormuz, driving global fuel prices sharply higher and raising fears of prolonged supply shortages.

Foreign Affairs Secretary Ma. Theresa Lazaro said the Marcos administration’s “independent foreign policy” allows Manila to source oil from Russia. She confirmed the Department of Foreign Affairs, in coordination with the Department of Energy, has tasked Philippine ambassadors to identify and reach out to alternative oil-producing countries.