Pakistan Diversifies Energy Sources with First-Ever Discounted Russian Oil
Pakistan Welcomes Arrival of First Discounted Russian Crude Oil
Pakistan’s Prime Minister, Shehbaz Sharif, announced on Sunday that the first shipment of discounted Russian crude oil had arrived in Karachi, marking a significant milestone in the trade relationship between Islamabad and Moscow.
In a tweet, Prime Minister Sharif expressed his satisfaction, stating, “Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.” He further emphasized that this marked the first-ever Russian oil cargo to Pakistan and the beginning of a new era in the Pakistan-Russia relationship.
A port official confirmed that the unloading process had already commenced on Sunday evening.
This deal comes as a relief to Pakistan, which is grappling with a payments crisis and the risk of debt default. The discounted crude oil offers some respite in this challenging economic situation.
For Russia, Pakistan’s purchase provides a new outlet for its oil, complementing its expanding sales to India and China. The redirection of oil from western markets due to the Ukraine conflict has prompted Russia to seek alternative buyers.
As energy imports constitute a significant portion of Pakistan’s external payments, the country’s crude oil imports are expected to reach 100,000 barrels per day following the arrival of the first cargo on Monday.
While details regarding the payment mechanism have not been confirmed, Pakistan recently announced plans to facilitate barter trade with Russia, Afghanistan, and Iran. This move is seen as an effort to reduce reliance on the dollar and mitigate the risk of cross-border smuggling of energy products.
The discounted Russian crude oil deal signifies a positive step forward for Pakistan’s energy sector and strengthens the bilateral ties between Pakistan and the Russian Federation.
