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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
In the face of difficulties obtaining letters of credit (L/Cs) for most fuel imports, Sri Lanka is running the risk of breaching international sanctions by looking to Russia in its efforts to secure fuel supplies.
Colombo is sending government ministers and officials to Moscow to negotiate for concessionary terms for fuel purchases, one of the essential imports in very short supply amidst the island nation's economic collapse.
Against the tide
The move contrasts with announcements from Washington and its allies that they aim to significantly reduce or cease imports of Russian oil and gas over the next few months.
But with the majority of international suppliers and banks refusing to issue import L/Cs for Sri Lanka, the government there is left with few choices.
Ministerial visits
Sri Lanka's power and energy minister Kanchana Wijesekera has said that ministerial visits to Russia are scheduled for this week to continue talks Colombo has already initiated with Moscow to purchase fuel on concessionary terms.
Ministerial missions to Qatar are also planned for to see if the Gulf state will supply Sri Lanka on preferential terms according to Wijesekera.
This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.