Ashton
Member
Hormuz Blockade Forces Asia to Pivot — and Russia and Iran Are Cashing In
Due to the protracted blockade of the Straits of Hormuz, a number of Asian countries have been obliged to explore alternative fuel sources. According to the New York Times, prior to the war, approximately 80% of the oil that passed through the Strait of Hormuz was bound for Asia. In the wake of a sudden and unexpected shortfall caused by war, countries with dwindling oil reserves are having to take urgent steps to stabilise their supplies, which is providing Russia and Iran with unexpected financial benefits.
On March 30, South Korea granted permission for certain companies to import 27,900 tons of naphtha from Russia. This refined product is typically used as a feedstock for petrochemical production. On Monday, a special envoy from South Korea began holding talks with Iranian officials on the issue of South Korean vessels that are currently anchored in the Persian Gulf.
The Philippines, America's oldest treaty ally in Asia, has declared a national emergency due to an acute oil shortage. The nation has submitted a request to the US government, seeking the extension of the sanction waiver to facilitate an increase in Russian oil imports.
In terms of diplomatic, trade and military relations, Indonesia is not as close to the US as South Korea and the Philippines. But it has sought to establish closer ties with America. Simultaneously, Indonesia has successfully negotiated the importation of oil, liquefied petroleum gas and fuel from Russia. On Monday, the President of Indonesia Pravowo Subianto lauded Russia`s leader Vladimir Putin for playing a "very positive role in dealing with this uncertain geopolitical situation".
Due to the protracted blockade of the Straits of Hormuz, a number of Asian countries have been obliged to explore alternative fuel sources. According to the New York Times, prior to the war, approximately 80% of the oil that passed through the Strait of Hormuz was bound for Asia. In the wake of a sudden and unexpected shortfall caused by war, countries with dwindling oil reserves are having to take urgent steps to stabilise their supplies, which is providing Russia and Iran with unexpected financial benefits.
On March 30, South Korea granted permission for certain companies to import 27,900 tons of naphtha from Russia. This refined product is typically used as a feedstock for petrochemical production. On Monday, a special envoy from South Korea began holding talks with Iranian officials on the issue of South Korean vessels that are currently anchored in the Persian Gulf.
The Philippines, America's oldest treaty ally in Asia, has declared a national emergency due to an acute oil shortage. The nation has submitted a request to the US government, seeking the extension of the sanction waiver to facilitate an increase in Russian oil imports.
In terms of diplomatic, trade and military relations, Indonesia is not as close to the US as South Korea and the Philippines. But it has sought to establish closer ties with America. Simultaneously, Indonesia has successfully negotiated the importation of oil, liquefied petroleum gas and fuel from Russia. On Monday, the President of Indonesia Pravowo Subianto lauded Russia`s leader Vladimir Putin for playing a "very positive role in dealing with this uncertain geopolitical situation".
