The Philippines is moving to establish a long-term Russia oil supply agreement as part of a broader strategy to strengthen national energy security and reduce its heavy dependence on crude imports from the Middle East.
President Ferdinand R. Marcos Jr. said the government is working to formalize an arrangement with Russia after relying on spot purchases during the recent global oil supply crisis triggered by the conflict in the Middle East.
The proposed Philippines Russia oil partnership reflects Manila’s efforts to diversify its energy sources and safeguard the country’s fuel supply against future geopolitical disruptions, particularly those affecting shipping through the Strait of Hormuz.
Philippines plans permanent Russian oil partnership
Speaking about the proposed agreement, President Marcos said the government is now putting in place a system that would make Russian oil imports a more reliable component of the country’s energy mix.
“Now we are beginning to put that system in place and I think it will be very good for the Philippines to have another assured lifeline when it comes to petroleum products,” Marcos said, according to Philippine media.
The initiative follows several ad hoc purchases of Russian crude that helped offset reduced availability of Middle Eastern supplies during the recent energy crisis.
Diversifying away from Middle East oil
Before the outbreak of the regional conflict, approximately 98% of the Philippines’ crude oil imports came from the Middle East, leaving the country highly exposed to disruptions in one of the world’s most important oil-producing regions.
The ongoing geopolitical tensions and risks to shipping through the Strait of Hormuz prompted Manila to accelerate efforts to diversify its import sources.
Marcos emphasized that while no formal agreement has yet been signed, both sides have reached an understanding to continue developing their energy cooperation.
“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.
Energy security remains a priority
The Philippines declared a national energy emergency in March as rising oil prices and supply disruptions placed significant pressure on the country’s economy.
Among Asian nations, the Philippines has been one of the hardest hit by the recent oil supply crisis due to its overwhelming dependence on imported crude.
The government now views diversification as a long-term strategy rather than a temporary response to the conflict.
According to Marcos, the Philippines intends to continue pursuing “non-traditional partners” for petroleum supplies even if the conflict in the Middle East comes to an end.
He noted that the country now has significantly more options for securing crude oil than it did before the crisis.
Russian ESPO crude enters Philippines market
As part of its diversification efforts, the Philippines imported its first cargo of Russia’s Far Eastern ESPO crude grade in April, marking the first shipment of the grade into the country in six years.
The import demonstrated Manila’s willingness to expand purchases beyond its traditional suppliers and reduce reliance on shipping routes vulnerable to geopolitical tensions.
Analysts say establishing a permanent oil supply deal with Russia could provide the Philippines with greater flexibility in sourcing crude while improving resilience against future disruptions in global energy markets.