Wednesday, 6 July, 2022

Russia proposes to export crude oil to Bangladesh

  • Special Correspondent
  • 24 May, 2022 12:00 AM
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Russia proposes to export crude oil to Bangladesh

Russia has proposed exporting crude oil to Bangladesh at low cost amid the volatility in the international fuel market.

“We have received a proposal from Russia. Bangladesh Petroleum Corporation (BPC) is examining how we can materialise the proposal,” state minister for power and energy Nasrul Hamid said at the sideline of a workshop on ‘Cyber Security in Power Sector Policy and Operational Perspective’ at Biddut Bhaban on Monday.

He also informed that Bangladesh has sufficient stock of petroleum fuel.  

Responding to a question, Nasrul said the government doesn’t have any plan to adjust the fuel tariff now.

He, however, said fuel import cost has increased significantly as the freight cost has soared by three to four times.  

The pressure for fuel import will come down significantly next year after the mega coal-fired plants start producing electricity and power import from Adani’s coal power station begin, he said.

“I think the transport sector may also shift into electric busses and cars which will reduce dependency on fuel,” he noted.

Officials of the energy and mineral resources division said the Russian proposal is an initial stage.  

Vagit Alekperov, who until recently headed Russia’s largest private oil company Lukoil, has said the potential tightening of existing sanctions would have a disastrous impact on Europe as well as Moscow, said RT news.

A European ban on the country’s “impossible to replace” crude would be “the most negative scenario” for all parties, Alekperov said, as quoted by the Financial Times.

“By imposing sanctions, Western countries gave a clear signal and declared their position. There is no need to further tighten them,” the billionaire told the media, adding that the EU move to cut off Russian oil imports would be “a shock for everyone.”

Last month, Alekperov – reportedly Russia’s 10th-richest person – stepped down as chief executive officer of Russia’s second-largest oil producer Lukoil, a post he held for nearly three decades. The move came after the billionaire was hit by UK and Australian sanctions as part of Western pressure over Russia’s military operation in Ukraine.

 “It is impossible to replace such a major energy exporter as Russia, even in the medium term,” the businessman said.

For Russia, the ban would mean the necessity to “reduce production, freeze wells, as we did at the beginning of the pandemic in 2020, because it is impossible to redirect all European volumes to other markets overnight.”

EU member states have been discussing proposals to ban Russian oil imports over several weeks with a group of nations led by Hungary strongly resisting the measure. The proposed oil embargo came as part of several rounds of unprecedented sanctions imposed on Russia over its military operation in Ukraine.

“Military conflicts can end quickly, while the energy configuration of the world has been set by decades of investment and hard work of many generations of professionals,” he added. “There is no need to undermine or destroy it.”