Azure SQL Database Restore after Server Failure - Where are the Backups?
I think the key to understanding that sentence is what I have marked in bold:


  Restore a database to another geographical region. This allows you to
  recover from a geographic disaster when you cannot access your server
  and database. It creates a new database in any existing server
  anywhere in the world.


See the documentation on Geo restore:


  Geo-restore is the default recovery option when your database is
  unavailable because of an incident in the region where the database is
  hosted. If a large-scale incident in a region results in
  unavailability of your database application, you can restore a
  database from the geo-replicated backups to a server in any other
  region. There is a delay between when a differential backup is taken
  and when it is geo-replicated to an Azure blob in a different region.
  This delay can be up to an hour, so, if a disaster occurs, there can
  be up to one hour data loss.


The difference between this and a regular restore is that there is a bigger latency and possibility of data loss. You also can't do a point in time restore.

So when you restore the backup from an existing database through the azure portal you have access to the backups on that same location.

Microsoft is replicating those backups to azure blobs in different regions in case some serious incident happens in a region.

In order to restore you would add a new database in your portal and select "backup" as a source:


  To geo-restore a database during its retention period using the Azure
  portal, open the SQL Databases page and then click Add. In the Select
  source text box, select Backup. Specify the backup from which to
  perform the recovery in the region and on the server of your choice.


So in case your entire database and data center is gone, you have the option to create a new database  in another data center, and you can use the latest geographically replicated backup (not the latest backup) as a source.