AP

Sri Lanka sends 2 ministers to Russia for oil amid crisis

Jun 26, 2022, 10:42 PM | Updated: Jun 27, 2022, 9:36 am

People wait to buy fuel at a fuel station in Colombo, Sri Lanka, Monday, June 27, 2022. Sri Lanka i...

People wait to buy fuel at a fuel station in Colombo, Sri Lanka, Monday, June 27, 2022. Sri Lanka is sending two ministers to Russia to negotiate for fuel — one of the necessities that the Indian ocean island nation has almost run out of amid its ongoing economic crisis. (AP Photo/Eranga Jayawardena)

(AP Photo/Eranga Jayawardena)

COLOMBO, Sri Lanka (AP) — Sri Lanka is sending two government ministers to Russia to negotiate for fuel — one of the necessities nearly exhausted as a result of the Indian Ocean nation’s economic collapse.

The plan comes as Washington and its allies aim to cut off energy imports from Russia in line with sanctions over its war against Ukraine. Since its invasion in late February, global oil prices have skyrocketed, prompting a number of countries to seek out Russian crude, which is being offered at steep discounts.

Power and Energy Minister Kanchana Wijesekera said the two ministers will leave for Russia on Monday to continue talks that Sri Lanka has been having with Russian authorities to directly purchase fuel, among other related issues.

He urged people on Saturday not to line up for fuel, saying only small amounts will be distributed to limited numbers of stations through the coming week. He said until the next shipments arrive, “public transport, power generators and industries will be given a priority.”

Residents have had to queue for hours and sometimes days to get fuel, sometimes resorting to burning charcoal or palm fronds for cooking.

Wijesekera’s comments came as a U.S. delegation is visiting Sri Lanka, seeking ways to help the island nation cope with an unprecedented economic crisis and severe shortages of essential supplies. President Gotabaya Rajapaksa held separate talks on Monday with diplomats from United States and Russia.

Like some other South Asian nations, Sri Lanka has remained neutral on the war in Ukraine.

However, Wijesekera said the Foreign Ministry and the Sri Lankan ambassador in Russia have been making arrangements for a fuel purchase.

“There is an advantage for us if we could buy oil directly from the Russian government or the Russian firms. There are talks going on,” he told reporters Sunday.

The shortages have led to protests against the government. The government has deployed armed troops and police at every fuel station.

Sri Lanka says it’s unable to repay $7 billion in foreign debt due this year, pending the outcome of negotiations with the International Monetary Fund on a rescue package. It must pay $5 billion on average annually until 2026. Authorities have asked the IMF to lead a conference to unite Sri Lanka’s lenders.

Last month, the country bought a 90,000-metric ton (99,000-ton) shipment of Russian crude to restart its only refinery, Wijesekera said.

In an interview with The Associated Press in mid-June, Prime Minister Ranil Wickremesinghe said the country would be compelled to buy oil from Russia and was trying to get oil and coal from traditional suppliers in the Middle East.

“If we can get from any other sources, we will get from there. Otherwise (we) may have to go to Russia again,” he said.

Wickremesinghe also said last week that the state-run Ceylon Petroleum Corp. was $700 million in debt and as a result, no country or organization was willing to provide fuel.

On Sunday, the corporation hiked prices of gasoline by 22% to 550 Sri Lankan rupees per liter (about $5.80 per gallon), and diesel by 15% to LKR 470 per liter (about $4.95 per gallon). Wijeserekara said the hike was meant to be on par with the global fuel prices.

Protesters have occupied the entrance to President Gotabaya Rajapaksa’s office for more than two months demanding his resignation, saying the primary responsibility for the crisis rests with him and his family, whom they accuse of corruption and mismanagement.

The U.S. delegation led by Robert Kaproth, deputy assistant secretary of the Treasury for Asia, and Kelly Keiderling, deputy assistant secretary of state for South and Central Asia, met on Monday with Rajapaksa, who briefed them about Sri Lanka’s economic and social crisis and the progress of discussions with the IMF, according to the president’s office. The U.S. Ambassador to Sri Lanka, Julie Chung, also joined the meeting.

The U.S. has announced $120 million in new financing for small and medium-sized businesses, a $27 million contribution to Sri Lanka’s dairy industry and $5.75 million in humanitarian assistance to help those hit hardest by the economic crisis. Another $6 million was pledged in new grants for livelihoods and technical assistance on financial reform.

Hours later, the Russian ambassador in Sri Lanka, Yuri Materiy, met Rajapaksa and discussed a wide range of issues including the export of tea to Russia, tourism, trade, oil, coal, gas and fertilizer, the president’s office said in a statement.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A demonstrator in Tel Aviv holds a sign calling for a cease-fire in the Hamas-Israel war on Nov. 21...

Associated Press

Hamas releases a third group of hostages as part of truce, and says it will seek to extend the deal

The fragile cease-fire between Israel and Hamas was back on track Sunday as the first American was released under a four-day truce.

4 days ago

Men look over the site of a deadly explosion at Al-Ahli Hospital in Gaza City, Wednesday, Oct. 18, ...

Associated Press

New AP analysis of last month’s deadly Gaza hospital explosion rules out widely cited video

The Associated Press is publishing an updated visual analysis of the deadly Oct. 17 explosion at Gaza's Al-Ahli Hospital.

7 days ago

Peggy Simpson holds a photograph of law enforcement carrying Lee Harvey Oswald's gun through a hall...

Associated Press

JFK assassination remembered 60 years later by surviving witnesses to history, including AP reporter

Peggy Simpson is among the last surviving witnesses who are sharing their stories as the nation marks the 60th anniversary.

7 days ago

Israeli Prime Minister Benjamin Netanyahu, chairs the weekly cabinet meeting in Jerusalem, Sunday, ...

Associated Press

Israeli Cabinet approves cease-fire with Hamas; deal includes release of 50 hostages

Israel’s Cabinet on Wednesday approved a cease-fire deal with the Hamas militant group that would bring a temporary halt to a devastating war.

8 days ago

Republican presidential candidate and former President Donald Trump helps serve food to Texas Natio...

Associated Press

Trump receives endorsement from Texas Gov. Greg Abbott during a visit to a US-Mexico border town

Donald Trump picked up the Texas governor’s endorsement Sunday during a visit to a U.S.-Mexico border town.

10 days ago

Eric Trump, executive vice president of Trump Organization Inc., speaks to the media as he leaves f...

Associated Press

Lawyers in Trump’s civil fraud trial are ordered to clam up about judge’s communications with staff

Eric Trump testified Friday that he was relying on accountants to ensure the accuracy of financial statements.

26 days ago

Sponsored Articles

(KTAR News Graphic)...

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

...

Dierdre Woodruff

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

...

SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.

Sri Lanka sends 2 ministers to Russia for oil amid crisis