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Lusa - Business News - Mozambique: Government likely to buy Russian oil, pay in rubles

Maputo,Aug.4,2022(Lusa)- Mozambique's minister for mineral resources and energy on Thursday admitted the possibility of the African country buying Russian oil in rubles, if that option is viable, after Moscow said it was available to Maputo to do so.
"I am sure that we will study and check the viability of the offer [from Russia], if it is viable, certainly [Russian oil] will be acquired," in rubles, Carlos Zacarias said.
Zacarias was speaking to the media on the sidelines of the seventh coordinating council of the ministry of mineral resources and energy, which is being held in Gaza province, southern Mozambique.
He said that Mozambique's receptiveness to the Russian proposal was due to the fact that the world was going through a "peculiar moment," characterised by great volatility of crude oil prices on the international market, due to the Russia-Ukraine war.
In that sense, Zacarias said, the Mozambican authorities' approach to the price of oil would be determined by the behaviour of the international market.
Zacarias denied pre-empting a possible future rise in fuel prices, given that several increases had already taken place this year.
"Regarding the change in fuel prices, it has to do with factors such as the variation in the international market, naturally, if that variation is above a well-defined level, then there could be a change in fuel prices," he said.
Moscow's proposal was put forward a week ago by the Russian ambassador to Mozambique, Alexander Surikov, after a meeting with the CTA - Confederation of Economic Associations of Mozambique.
"The ruble and the metical are worthy currencies that can be used and do not need the benevolence of some other countries that control the international system," the Russian diplomat said at the time, adding that Moscow wants to strengthen cooperation with Maputo.
Mozambique was among the countries that abstained on two resolutions that went to a vote at the United Nations (UN) General Assembly: one condemning Russia for the humanitarian crisis in Ukraine due to the war and the other suspending Moscow from the Human Rights Council.
The Mozambique Liberation Front (Frelimo, the ruling party) was an ally of Moscow during the time of the former USSR, receiving military support during the struggle against Portuguese colonialism and economic aid after independence in 1975.
According to data from the CTA, the annual volume of economic transactions between Mozambique and Russia is estimated to be at least 100 million dollars (98.5 million euros at current exchange rates).

Agency : LUSA

Date : 2022-08-05 09:48:00


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