PH still negotiating Russia oil supply agreement

The Philippines has yet to finalize a long-term agreement with Russia for the regular importation of oil products, as the government continues to assess geopolitical and policy considerations surrounding a potential energy partnership with Moscow.

President Ferdinand “Bongbong” Marcos Jr. said discussions on a possible petroleum supply arrangement with Russia remain ongoing, but stressed that reaching such an agreement involves a range of factors beyond trade and commerce.

Speaking to reporters on the sidelines of the Asean-Russia Commemorative Summit in Kazan, Marcos said negotiations are continuing despite challenges tied to international politics and global security concerns.

“There are many complications to that. It is not that simple, signing a trade agreement,” the President said.

“There are, of course, political considerations — geopolitical considerations… But when two parties are determined to make it work, I’m always very confident that it will work and we will find a way around those challenges and those complications so that we make it a reality,” he added.

Energy security was among the issues discussed during the summit, which brought together Russian President Vladimir Putin and leaders from across the region.

While both countries expressed interest in strengthening cooperation in the energy sector, Marcos said no formal commitments or binding agreements were concluded during the meeting.

The President explained that the Philippines has previously sourced petroleum products from Russia on a limited basis, particularly during periods when global supply chains were disrupted by conflicts in the Middle East.

Those disruptions contributed to volatility in international oil markets and prompted Manila to explore alternative sources of fuel.

According to Marcos, the government is now examining ways to establish a more structured arrangement for obtaining petroleum products from non-traditional suppliers, including Russia, as part of efforts to strengthen the country’s energy security and ensure a stable supply of fuel.

“The reason being is that what we have been doing with Russia in terms of providing oil products to the Philippines has been on a very ad hoc basis,” Marcos said.

Despite the potential advantages of diversifying fuel sources, Marcos acknowledged concerns that expanding economic ties with Russia could draw scrutiny from countries critical of Moscow’s military actions in Ukraine.

He reiterated that the Philippines remains committed to promoting peace and would carefully assess any future arrangement to ensure it does not become associated with activities that could be viewed as supporting armed conflict.

“Certainly, that’s a concern. And it’s not something, as I said, as I’ve always said, the Philippines is one of the, if not the greatest sponsor, supporter for peace. And not only in our region but everywhere else,” said Marcos.

“Certainly, that is not something that we do not like to be accused of. And would not like to be part of. We will certainly not want to be part of any system that furthers conflict anywhere in the world. Those are the decisions, some of them very nuanced decisions, that we will have to be making in the future,” he added.

Marcos also downplayed concerns that trade relations between the Philippines and Russia could significantly contribute to Moscow’s war efforts, noting that bilateral trade remains relatively modest.

He said the current trade volume between the two countries stands at around $5 billion, which he argued is too small to be considered a major source of funding for any conflict.

The President also framed the discussions within the broader context of shifting global political and economic dynamics.

He said many countries are increasingly pursuing a wider range of partnerships as the international system evolves from traditional power structures toward a more multipolar world.

Marcos noted that the Philippines has been adapting its foreign and economic policies to these changes while maintaining its longstanding relationships with traditional allies.

“The traditional power structures and the traditional powers are no longer the powers that exist when, for example, the United Nations was formed right after the war. So we, the Philippines, is just responding, adjusting to the new reality,” he said.

“Very early on, I think you will remember, I already said that the Philippines no longer subscribes to a bipolar world where you have to choose one side over the other. And during this summit, there was a lot of talk about multipolarity, the multi polar world that we now have to deal with, which may be a bit more complex but it also provides more opportunities than we had before. And that I think was one of the main results and findings that we arrived at during the summit,” he added.

While discussions on a Russia-Philippines oil supply arrangement continue, Marcos indicated that the government will proceed cautiously, balancing the country’s energy security needs with its broader foreign policy objectives and commitment to peace.