Russia May Establish an Oil Hub in Madagascar — Bloomberg
Russia may gain a new logistics hub for exporting petroleum products to Africa via Madagascar.
This possibility arises from the government’s decision to establish a state-owned company that will oversee fuel imports.
According to Bloomberg, the new model has raised concerns among members of the fuel association Groupement Pétrolier de Madagascar (GPM). They believe the reform could pave the way for purchases of Russian fuel and create sanctions risks for international companies and their customers.
On July 1, the Malagasy parliament passed a law establishing a state-owned oil company that will be authorized to purchase fuel abroad. A few weeks earlier, the country’s prime minister stated that Russia could invest in the construction of an oil storage facility on the island.
According to industry representatives, the changes could affect fuel supplies to international airlines, construction contractors, mining companies, and foreign investors operating in Madagascar.
Source: Bloomberg.
As a reminder, on Friday, July 17, global oil prices continued to hover near the $84-per-barrel mark. The market remains stable amid current economic factors and the situation on the global energy market.
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