Pakistan starts bringing in discounted “Russian crude oil.”
The first delivery of discounted Russian crude under a significant agreement between Russia and Pakistan arrived in Pakistan on June 12th, to the delight of the Pakistani authorities.
The prime minister of Pakistan, Shahbaz Sharif, praised it as a “fulfilment of commitments” to the country, and Marriyum Aurangzeb, the information minister, stated that it represented a “true contribution” for the people of Pakistan.
In Karachi, the nation’s primary import hub and port city, the shipment was being delivered. Cash-strapped Since the former Pakistani prime minister Imran Khan’s visit to Moscow in February 2022 to meet with President Vladimir Putin of Russia, both countries have been negotiating to buy cheap crude.
At the time of Mr. Khan’s visit, which coincided with the beginning of Russia’s invasion of Ukraine, tensions between Pakistan and the United States were high. Moscow has subsequently struggled with Western embargoes over the war, redirecting much of its production to India, China, and other Asian nations at cheaper rates after Western clients dismissed it as a reaction to the war.
Musadiq Malik, Pakistan’s deputy oil minister, revealed that Islamabad first entered into a contract with Russia for the purchase of 100,000 metric tonnes of oil, which is expected to come in two ships. On Sunday, the first ship carrying the crude arrived in Karachi. Its cargo load’s size wasn’t immediately clear.
The only thing he said concerning the price of Russian oil was that Pakistan would endeavour to maintain a constant import in the hope that petrol prices would drop. Regarding the method of payment, no information was provided.
Following the disastrous flooding last summer that claimed more than 1,700 lives and resulted in $30 billion in damages, Mr. Sharif’s administration is currently dealing with an unheard-of economic crisis. In the meantime, discussions with the IMF to revive the $6 billion bailout plan have been put on hold since December.