Key facts
- Malaysia is exploring the possibility of importing crude oil from Russia.
- This move could complicate Prime Minister Anwar Ibrahim's foreign policy of maintaining relations with all nations.
- The country is assessing its refinery infrastructure to determine if it can process Russian crude.
- Malaysia has secured fuel supplies through July and is avoiding long-term deals due to price volatility.
- The Strait of Hormuz was declared closed by Iran amid ongoing conflict.
Malaysia's pursuit of alternative crude oil supplies, including from Russia, is presenting a foreign policy challenge for Prime Minister Anwar Ibrahim's administration, which aims to maintain relationships with all countries. Analysts suggest this move could complicate the nation's "friends with all" approach, particularly given Western sanctions against Moscow.
Economy Minister Akmal Nasrullah Mohd Nasir indicated on Wednesday that Malaysia is exploring new sources, such as Russia and Turkey, to broaden its supply options amid ongoing conflict in the Middle East that has disrupted key oil-producing regions. He emphasized that the decision hinges on whether Malaysia's existing facilities are equipped to process crude oil with different characteristics. State energy firm Petronas will play a crucial role in evaluating the suitability of foreign crude for domestic refineries.
Nasir reassured the public that Malaysia has sufficient fuel reserves until the end of July and dismissed concerns about an impending shortage. He also noted the government's caution regarding long-term supply contracts due to the volatile nature of global oil prices. The next assessment of the country's supply security is anticipated by the end of June.