The country’s prime minister announced on Sunday that the first shipment of discounted crude from Russia had arrived, and that oil discharge would begin the following day.
The country’s prime minister announced on Sunday that the first shipment of discounted crude from Russia had arrived, and that oil discharge would begin the following day (June 12).
Another of my promises to the country has been fulfilled. Happy to announce the arrival in Karachi of the first discounted crude oil cargo from Russia, which will start oil discharge tomorrow, the premier tweeted.
This day will change everything. In order to achieve prosperity, economic growth, energy security, and affordability, we must take small steps, according to PM.
He claimed that the first oil shipment from Russia to Pakistan marked the beginning of a “new relationship between Pakistan and the Russian Federation.”
“I commend all those who persisted in this national endeavour and helped to turn the promise of Russian oil import into reality,” the prime minister continued.
The previous year, the nation’s finance minister, stated that the country was thinking about acquiring discounted Russian oil. He pointed out that the neighbouring country of India had been doing this and that Islamabad had a right to do the same.
The state minister for petroleum, later travelled to Moscow to hold discussions about issues such as the supply of petrol and oil, and the government then declared that it would buy discounted crude oil, petrol and diesel from Russia.
A Russian delegation arrived in Islamabad in January 2023 to hold negotiations to seal the deal. The nations agreed to deal with all technical concerns, including insurance, transportation, and payment methods, during the three-day meeting in order to sign an agreement by the end of March this year.
A joint statement released by the two sides had then stated, “After consensus on the technical specifications achieved, the oil and gas trade transaction will be structured in a way it has a mutual economic benefit for both countries.”
According to a deal negotiated between Islamabad and Moscow, state minister for petroleum had claimed in April that Pakistan had placed its first order for discounted Russian crude oil.
He had also stated that if the first transaction went off without a hitch, imports were anticipated to reach 100,000 barrels per day (bpd). Pak-Arab Refinery Limited (Parco) and other refineries will follow Pakistan’s Refinery Limited (PRL) in processing the Russian crude initially as a test run, according to Malik.
Analysts claimed that Pakistan would have found it difficult to accept the crude deal, but the country’s financial needs are great and it is a long-standing ally of the West and the arch-rival of its neighbour, India, which has historically been closer to Moscow.
In the midst of a severe balance-of-payments crisis that puts Pakistan at risk of defaulting on its debt obligations, discounted crude provides relief. The bulk of the nation’s external payments are made up of energy imports.
Currently, traditional Gulf and Arab suppliers, primarily Saudi Arabia and the UAE, provide 80% of Pakistan’s daily oil needs of about 154,000 barrels. The 100,000 bpd from Russia should significantly lessen Pakistan’s reliance on fuel from the Middle East.
On the other hand, as Moscow diverts oil from Western markets due to the Ukraine conflict, Pakistan’s purchase gives Moscow a new outlet, increasing its sales to India and China.