South Africa considers buying Russian oil to tackle energy inflation — a move that could boost Moscow's coffers

South Africa is considering buying oil from Russia in order to fight energy inflation.

South African Mineral Resources and Energy Minister Gwede Mantashe told parliament that they should import crude oil from Russia at a low price because it is not sanctions.

Purchases of Russian energy products are not in violation of US or EU sanctions because of the war in Ukraine. The trade restrictions do not prevent buyers outside the US and EU from buying Russian oil.

The US Energy Secretary said last month that secondary sanctions against countries buying Russian oil aren't off the table, but the Biden administration is cautious about the effect of such restrictions on the market. Red-hot consumer inflation is being caused by high oil prices.

Consumer prices in South Africa increased 5.9% in April over a year ago according to the statistics department. Statistics South Africa says fuel prices were 29.2% higher than a year ago.

The oil price has risen by over $60 a barrel so far this year, driven in part by an anticipated shortfall of Russian supply, but also by production capacity constraints in major exporters.

South Africa imports a large amount of fuel. Nigeria and Saudi Arabia are some of the countries it buys oil from.

After the United States and Saudi Arabia, Russia is the third-largest crude oil exporter. The European Union will stop buying Russian fuel this year due to the war against Ukraine. New buyers in China and India are being reached by its oil.

South Africa, which has historical ties with Moscow, abstained from a United Nations vote condemning Russia's invasion of Ukraine. The president of South Africa said last month that bystander countries were hurt by the sanctions against Russia.

Moscow will get more money from the purchase of Russian oil. Russia has been making a lot of money despite sanctions. The International Energy Agency said on Wednesday that the country's revenues from oil exports jumped from April to May.

Insider sent a comment to the South Africa's mineral resources and energy ministry, but they didn't reply immediately.