War bites Phl
Trade with China has served as a lifeline for Russia, which had already faced Western sanctions over its 2014 seizure of the Crimea region from Ukraine
United States Secretary of State Antony Blinken on Sunday (Monday in Manila) said the West is in “very active” discussions about a Russian oil embargo, but as the Brent crude oil now approaches $140 a barrel — an all-time high, fuel pump prices have started to skyrocket and crimp the people’s spending power.
Only China, a Russia ally, has seen exports in January and February rise a combined 16.3 percent on surging global demand and a spike in trade with Russia in the run-up to the war in Ukraine, according to customs data released on Monday.
The growth rate exceeded economists’ expectations of a 15.7 percent gain from a year earlier.
Shipments from the world’s second-largest economy were valued at $544.7 billion in the first two months, the data from the General Administration of Customs showed.
Nearly 50 percent hike
Exports to Russia rose 41 percent compared to the same period in the previous year.
Trade data for January and February are usually combined to even out the impact of the extended Chinese New Year holiday, which usually begins in one of those two months.
Imports rose 15.5 percent to $428.75 billion in the first two months of the year, leaving a Chinese trade surplus of $115.95 billion.
Exports to Russia grew at the fastest rate among China’s major trading partners
in January and February, outpacing trade with the European Union and the United States.
Russia was also the second-biggest source of imports for China, which buys energy products from its neighbor.
Trade with China has served as a lifeline for Russia, which had already faced Western sanctions over its 2014 seizure of the Crimea region from Ukraine.
Moscow’s international isolation has deepened following its invasion of Ukraine that began late last month.
Beijing approved Russian wheat imports just hours before the outbreak of hostilities in Ukraine.
Bombing intensifies
Putin’s army had stepped up the shelling of cities across Ukraine. The United Nations (UN) said 1.5 million people have now fled, the fastest-growing refugee crisis since World War II.
Attempts to evacuate civilians from the besieged Ukrainian city of Mariupol failed again, however, amid repeated ceasefire violations. Residents are without power and water.
Ukraine’s military said it is fighting “fierce battles” with Russian forces on the edge of the southern city of Mykolayiv, which sits on the road to the country’s biggest port Odesa.
Bites
Meanwhile, Russian shops were told to limit sales of essential foodstuffs to counter black market speculation as Western sanctions bite.
This comes as thousands more were arrested at anti-war demonstrations across Russia, bringing the total to well over 11,000, since the invasion began.
The effects of the international sanctions against Russia have also sent fuel prices in the Philippines spiking for the 10th straight week.
From 8 to 14 March, motorists will have to shell out an additional P5.85 per liter of diesel, P3.60 per liter of gasoline, and P4.10 for every liter of kerosene.
According to industry sources, the market disruption caused by the Russia-Ukraine war was worsened by higher market premiums and a higher price of coco-methyl ester for diesel.
Philippine oil firms usually announce price adjustments every Monday to be implemented on the following day’s morning.
Pump prices have only been increasing so far this year, following a net increase of P17.65 per liter for gasoline, P14.30 per liter for diesel, and P11.54 per liter for kerosene in 2021.
Previous reports also showed that the global benchmark Brent crude price soared to over $119 per barrel as Russia’s invasion of Ukraine sent jitters across oil markets.
Phl supply assured
At a Congressional inquiry on Monday, Energy Undersecretary Gerardo Erguiza Jr. reiterated that the country has an oil supply that can last for over a month.
“Our problem right now is the prices of oil but in terms of quantity, we don’t have a problem,” Erguiza said, adding that the country has an excess supply for up to 40 days.
He also pointed out that oil companies and bulk suppliers are strictly mandated to maintain a minimum inventory equivalent to 15 days for refined products.
The minimum inventory for LPG meanwhile is at seven days. Refiners, on the other hand, are required to maintain a minimum inventory of 30-days-worth of crude oil and refined products.
Following a meeting with officials from oil firms to discuss their contingency plans, the energy department aims to implement the petroleum reserve plan in two phases — short-term and long-term.
As part of the short-term plan, the government will lease available and spare tanks of the oil importers to store additional reserves. It will also contract an oil company to handle its orders for buffer stocking.
From 8 to 14 March, motorists will have to shell out an additional P5.85 per liter of diesel, P3.60 per liter of gasoline, and P4.10 for every liter of kerosene.
Since the government does not have enough storage facilities, the Department of Energy will partner with the private sector to access their facilities across the country.
But for the long-term plan, the government would require the state-run Philippine National Oil Company to build its storage tank.
Energy Secretary Alfonso Cusi had already cited Batangas and Bataan as possible locations where the proposed oil depot can be constructed.
Repatriation
More Filipinos have been repatriated from war-torn Ukraine, the Department of Foreign Affairs (DFA) reported on Monday, as they welcomed the arrival of around 20 evacuees in the Philippines.
The DFA said three groups of Filipino repatriates departed from Warsaw, Poland, and safely landed in the country on Sunday, 6 March, together with their Ukrainian dependents.
The first group consisted of four Filipino adults, three Filipino-Ukrainian children with their three Ukrainian mothers. The second group included two Filipino adults, a Filipino-Ukrainian child, and his Ukrainian mother. The third group, meanwhile, was composed of three Filipino nationals from Kyiv who arrived in Manila on their own arrangements.
The latest figures from DFA showed there are 380 Filipinos living in Ukraine but only 181 have been accounted for.
As of 2 March, the agency said 141 remained in the Eastern European country despite the continuous aggression of Russia. Of the figures, 45 are in the capital Kyiv, 55 are near the Hungarian border, and the others are spread across Ukraine. At least 87 seafarers are also onboard ships docked near the country.
Ukraine remains under Alert Level 2 of the Philippines’ crisis alert system which means evacuations are still “voluntary”.
The DFA also recently reported the safe extraction of 34 Filipino crew members from bulk carriers M/V S-Breeze and M/V Star Helena after they were stranded in the former Soviet state. The seafarers have been transported to Moldova where they will be awaiting their repatriation set on Tuesday, 8 March.
Isolation
Several Western countries, including the UK and the United States, have called on Interpol to suspend Russia from the international law enforcement organization, according to British Home Secretary Priti Patel.
The UK, United States, Canada, Australia, and New Zealand have requested “the immediate suspension of Russia’s access to its systems”, Patel tweeted on Sunday.