President Ferdinand R. Marcos Jr. announced Thursday that the Philippines is seeking to enhance energy security by developing a system to formalize its oil arrangement with Russia amid global oil volatility and geopolitical tensions.
Meeting in Kazan
Speaking to reporters in Kazan, Russia, Marcos stressed that while there were no contracts signed between the Philippines and Russia, there is a mutual understanding to institutionalize the supply chain to avoid future disruptions amid the Middle East crisis.
Marcos noted that the arrangement with Russia was initiated on an ad hoc basis, which means oil from Moscow will only be imported to the Philippines when needed.
Diversifying Suppliers
“In terms of energy, there have been no firm agreements, but merely an understanding that we will continue to develop what we had already started as a response to the oil crisis that was the effect of the war in the Middle East, which we are hoping will come to an end soon,” he said.
“But, nonetheless, even if the war does come to an end, we, the Philippines, will still continue to look for so-called non-traditional partners in terms of the supply of petroleum products,” Marcos added.
He said the Philippines aims to diversify its petroleum product suppliers, considering Russia as a reliable non-traditional partner.
Assured Lifeline
The country, according to the President, is very open to getting oil supply from Russia, saying it will be “very good for the Philippines to have another assured lifeline when it comes to petroleum products.”
He said formalizing the oil deal with Russia will give the Philippines more options to secure energy supply.
“This is yet to be decided. There are many complications to that. It is not that simple,” Marcos said. “There are, of course, political considerations – geopolitical considerations. But when two parties are determined to make it work, I'm always very confident that it will work and we will find a way around those challenges and those complications so that we make it a reality.”
A ship carrying over 700,000 barrels of Russian crude oil arrived in the Philippines in March, after the country declared a national energy emergency due to the Middle East conflict.
