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Russia supplies fuel to Bolivia amid growing energy crisis

According to data from LSEG vessel trackers and industry sources, Russia is increasing its exports of motorfuels to Bolivia as the energy crisis in Latin America worsens and Moscow must expand sales affected by Western sanctions.

According to shipping data, between December and march, four tankers loaded at Russian ports Vysotsk Primorsk Taman included 190,000 tons of diesel. This indicates that the port of discharge was Chilean.

Market sources confirmed that the cargoes were destined for Bolivia, a landlocked country which depends on ports in other countries for seaborne imports.

Bolivia's energy company YPFB controls energy imports as well as exports. The firm said on Thursday that it expected to receive a combined total of five cargoes of diesel and gasoline by April 4. Three of these were imported from Houston. However, the other two countries of origin for the other two cargoes have not been disclosed.

According to shipping data, Russia shipped Bolivia 105,000 tons (approximately) of low-sulfur diesel last year to help combat a fuel shortage.

Bolivia is heavily dependent on imported fuels, as the local production of diesel and gasoline only accounts for 15% and 30% respectively.

A worsening fuel crisis is affecting the ability of farmers in Bolivia's Santa Cruz farm region to harvest their crops. This is a major concern for this struggling South American nation where agriculture has been a major economic driver.

Bolivia's Energy Ministry announced in March a series of incentives for the importation of gasoline and diesel to help promote Bolivia's private sector and alleviate a long-standing fuel shortage.

The statement said that the period for fuel imports, marketing and authorization will be increased from one to three years. Tariff duty on imported gasoline is also to be reduced to zero.

(source: Reuters)