Bolivia is experiencing a deepening energy crisis while Russia has increased fuel shipments to the landlocked country. Using data from LSEG for vessel tracking and information from industry players it is reported that at least four Russian tankers with approximately 190,000 metric tons of diesel departed the ports of Vysotsk, Primorsk and Taman between December and March. The shipments are from Chilean ports and are an important lifeline for Bolivia which is dependent on foreign imports for most of its fuel.
Bolivia’s national energy company YPFB announced that five shipments of fuel, three originating from Houston and two from unknown sources will reach Bolivia on or before April 4. YPFB also activated the contract with Russia to bring approximately 105,000 tons of low sulfur diesel to avoid Bolivia from running out of diesel. Bolivia has been increasingly relying on international suppliers for high sulfur diesel fuel as the country produces only 15% of its diesel needs and 30% of its gasoline requirements.
Bolivia’s agricultural sector is already experiencing impacts from the energy shortfall particularly in Santa Cruz, the main agricultural area where fuel shortages could endanger crop harvests. In response, the government of Bolivia has provided incentives to increase fuel imports including lengthening import licenses from one year to three years and removing tariff duties on gasoline imports.
For Russia, accelerating fuel exports to Bolivia also fits their broader approach to find new markets in light of Western sanctions. As both countries face economic difficulties, this partnership growth in energy signifies expanding trade relations amidst global changes.
