East Asian Nations Seek Russian Oil Amid Middle East Supply Disruptions

A surge in interest from East Asian countries to purchase Russian oil is occurring as governments grapple with bolstering supplies and mitigating soaring prices triggered by escalating tensions in the Middle East. The United States recently authorized the delivery and sale of Russian crude oil and petroleum products loaded onto ships between March 12 and April 11, a move that has drawn criticism from some European leaders concerned about potentially funding Russia’s war in Ukraine.

Thailand Considers Russian Crude Purchases

Thailand is preparing to initiate discussions regarding the purchase of Russian crude oil to address domestic supply shortages. Deputy Prime Minister Phiphat Ratchakitprakarn stated the country is taking this step to offset dwindling reserves, which currently cover just over three months of crude needs. Thailand recently suspended fuel exports to prioritize internal supply [Reuters].

Philippines and Sri Lanka Explore Russian Oil Imports

The Philippines is “considering” importing Russian oil, with a final decision deferred to the energy department. This consideration follows a government response to rising fuel costs, which included implementing a four-day workweek for government employees [Reuters]. Sri Lanka’s Foreign Minister Vijitha Herath met with Russian Ambassador Levan Dzhagaryan to discuss “expediting” oil imports following the U.S. Sanctions waiver. Dzhagaryan pledged to relay the request to Moscow and facilitate deliveries [Reuters].

Japan and ASEAN’s Response

Japan, which historically sourced 94% of its crude oil from the Middle East in 2025, indicated it would “consider” purchasing Russian crude after the U.S. Issued its sanctions waiver. But, Japan benefits from substantial strategic reserves, equivalent to 254 days of consumption. Foreign and economic ministers from ASEAN, a regional association of countries, have called for an immediate conclude to the conflict in the Middle East, citing the detrimental effects of surging oil prices and disrupted trade on Southeast Asian economies [Reuters].

Financial Implications and Prior Imports

Russia has reportedly earned an estimated $1.3-1.9 billion windfall from taxes on oil exports since the effective closure of the Strait of Hormuz drove up global energy prices [U.S. Department of the Treasury]. Some analysts suggest European governments may face pressure to postpone an upcoming ban on Russian liquefied natural gas if the global energy supply crunch persists. Asian countries were already importing Russian oil before the recent escalation of tensions, with China and India as major buyers, though India previously faced pressure from the Trump administration to curtail these purchases due to concerns about supporting Russia’s economy [U.S. Department of the Treasury].

U.S. Waiver for Indian Refiners

Last week, the U.S. Treasury Department granted Indian refiners a 30-day waiver to purchase Russian oil currently stranded at sea [Reuters].

The U.S. Department of the Treasury, through the Office of Foreign Assets Control (OFAC), imposed sanctions on Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Public Joint-Stock Company Oil Company Lukoil, in October 2025, due to Russia’s lack of commitment to a peace process in Ukraine [U.S. Department of the Treasury]. Secretary of the Treasury Scott Bessent emphasized the need for an immediate ceasefire and stated the Treasury is prepared to take further action to support efforts to end the conflict [U.S. Department of the Treasury].