Finance
Fuel-Thirsty Asian Countries Line up for Russian Oil
Published by Global Banking & Finance Review®
Posted on March 26, 2026
3 min readLast updated: March 26, 2026
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Asian nations such as Vietnam, Thailand, the Philippines, Indonesia and Sri Lanka are increasingly turning to Russian oil amid supply disruptions caused by the Iran war and constrained Russian refining capacity.
Asian Nations Intensify Russian Oil Imports as Regional Supply Tightens
Surge in Asian Demand for Russian Oil Amid Global Supply Disruptions
MOSCOW, March 26 (Reuters) - Asian countries including Vietnam, Thailand, the Philippines, Indonesia and Sri Lanka are lining up to buy Russian oil as the Iran war blocks supplies, raising the possibility that demand may exceed supply, several sources including Russia said.
Since the war in Ukraine prompted European customers - once the biggest buyers of Russian oil and gas - to shun Moscow, India and China have accounted for around 80% of Russian oil exports. Turkey has also been a significant buyer.
But in recent weeks, a host of Asian countries have been lining up, according to various sources including media and Russia.
Rising Demand and Supply Constraints
"Demand is high, particularly for alternative destinations. As a result, a point may come when it becomes difficult to meet additional demand," Kremlin spokesman Dmitry Peskov said in response to a question about Russian oil demand.
A fifth of global oil production has effectively been blocked from reaching the market due to the U.S.-Israeli war on Iran which has halted traffic through the Strait of Hormuz.
Impact of Sanctions and Regional Conflicts
Russia has benefited from high oil prices and a 30-day sanctions waiver from the United States for purchases of Russian oil at sea.
Oil revenues and natural gas sales generate around a quarter of the country's state funds.
Export Limitations Due to Ukrainian Drone Attacks
Russia's ability to boost oil exports is, however, constrained, in part by Ukrainian drone attacks which have effectively shut down at least 40% of the country's oil-exporting capacity.
Asian Countries' Moves to Secure Russian Oil
Philippines Resumes Russian Oil Purchases
TWO TANKERS FOR MANILA
The Philippines has purchased two of Russia's far-eastern ESPO Blend cargoes of some 1.5 million barrels, resuming its Russian oil purchases for the first time in five years, according to LSEG data.
The Sara Sky and Tiger Wings tankers shipped oil to the country's Limay port, where the terminal for the Bataan refinery is located.
Thailand and Sri Lanka Explore Russian Oil Deals
Thailand has also held discussions with Russia on potential crude purchases, according to its Deputy Premier Phiphat Ratchakitprakarn.
Several Sri Lankan media outlets reported on talks about Russian oil supplies to Sri Lanka too.
Vietnam Seeks Long-Term Russian Oil Supply
Vietnam's Prime Minister Pham Minh Chinh visited Moscow this week, asking Russian oil and gas firm Zarubezhneft to boost its investment in Vietnam and to supply crude oil to the Southeast Asian country on a long-term basis.
(Reporting by Reuters; editing by Guy Faulconbridge and Elaine Hardcastle)
Key Takeaways
- •Closure of the Strait of Hormuz due to the Iran–US–Israel war is creating a historic disruption—nearly 20% of global oil supply is affected—prompting rising interest in Russian oil from Asia (en.wikipedia.org).
- •Ukraine’s intensified drone campaign has knocked out roughly 17–20% of Russia’s oil refining capacity, curbing Moscow’s ability to ramp up exports despite strong demand (hydrocarbonprocessing.com).
- •The United States has issued a 30-day sanctions waiver allowing Russian oil purchases at sea, temporarily boosting Russia’s export earnings, which remain vital to state revenues despite infrastructure constraints (en.wikipedia.org).
References
Frequently Asked Questions about Fuel-thirsty Asian countries line up for Russian oil
1Which Asian countries are increasing their imports of Russian oil?
Vietnam, Thailand, the Philippines, Indonesia, and Sri Lanka are all increasing Russian oil imports.
2Why has demand for Russian oil surged in Asia?
The Iran war has blocked supplies through the Strait of Hormuz, forcing Asian countries to seek alternative sources like Russia.
3How has the Ukraine war affected Russian oil exports?
European buyers have largely stopped purchases, making India and China the main importers, with new demand from other Asian nations.
4What recent oil deals involve the Philippines and Russia?
The Philippines resumed Russian oil purchases after five years, importing two ESPO Blend cargoes totaling 1.5 million barrels.
5What challenges are affecting Russia's ability to export oil?
Russian oil export capacity is constrained by Ukrainian drone attacks and infrastructure damage.
