Mozambique: Government admits the possibility of buying Russian oil in roubles

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Mozambique: Government admits the possibility of buying Russian oil in roubles

1:02 CAT | 04 Aug 2022

File photo: Lusa

The Minister of Mineral Resources and Energy of Mozambique today admitted that the country could buy Russian oil in roubles, after Moscow presented the option to Maputo.

“I am sure that we will study and verify the feasibility of this offer [from Russia]. If it is viable, for sure [Russian oil] will be acquired” in roubles, Carlos Zacarias said.

Zacarias was speaking to the media today on the sidelines of the seventh Coordinating Council of the Ministry of Mineral Resources and Energy in Gaza province, southern Mozambique.

The minister pointed out that Mozambique’s receptivity to the Russian proposal stems from the fact that the world is experiencing a “peculiar moment”, characterised by great volatility in oil prices on the international market as a result of the Russia-Ukraine war.

The Mozambican authorities’ approach in relation to the price of oil will be determined by the behaviour of the international market, he added.

Zacarias however refused to anticipate any possible rise in fuel prices.

“Any change in fuel prices has to do with factors such as variation in the international market. Naturally, if this variation is above a well-defined level, then there may be a change in fuel prices,” he stated.

The Moscow proposal was put forward a week ago by the Russian ambassador to Mozambique, Alexander Surikov, after a meeting with the Confederation of Economic Associations of Mozambique (CTA).

“The rouble and the metical are worthy currencies that do not need the benevolence of some other countries that control the international system,” the Russian diplomat declared at the time, adding that Moscow wanted to strengthen cooperation with Maputo.

READ: Mozambique: Russian ambassador meets with CTA

Mozambique was among the countries that abstained on two resolutions that were voted on by the General Assembly of the United Nations, one condemning Russia for the humanitarian crisis in Ukraine as a consequence of the war and the other suspending Moscow from the Human Rights Council.

The Mozambican Liberation Front (Frelimo, the ruling party) was an ally of Moscow during the time of the former USSR, and received military support during the struggle against Portuguese colonialism and economic aid after independence in 1975.

According to data provided by CTA, the annual volume of economic transactions between Mozambique and Russia is estimated to be at least US$100 million (€98.5 million at current exchange rates).

READ: Mozambique: Russia willing to trade using rubles, meticais

To stabilise fuel prices in Mozambique: Russia advocates exchange in this sector – Notícias

Watch the TVM report.