By the end of April, Pakistan is scheduled to receive the first oil shipment from Russia, which may open the door to a much larger agreement.
The cargo, according to a report in a local newspaper, is being viewed as a test case rather than the beginning of oil imports from Russia since Russia asked Pakistan to buy one cargo first to reduce the mistrust that exists between the two countries.
Details indicate that the Russian side is concerned about Pakistan’s commitment to finalizing the agreement, which could make Russia Pakistan’s second-largest crude oil supplier after Saudi Arabia.
The Russian side requested during a recent discussion to import a single cargo first.
Russian Crude Oil Payment Process
Moreover, Russia has agreed to accept payment in Russian rubles, Chinese yuan, and UAE dirham in exchange for providing Pakistan with oil.
It is important to note that Pakistan and Russia agreed on a deadline for the crude oil sale of late March, according to statements made by Pakistan’s Minister of State for Petroleum Musadik Malik in January.
The minister has also asserted on numerous occasions that Russia has agreed to give Pakistan discounted access to its crude oil and petroleum products.
Unfortunately, no information regarding the Pakistan-specific discount has been released to date.
Pakistan and Russia have mutually committed to complete the transaction framework for trade in the oil and gas sector by March 2023, according to the joint statement of the 8th session of the Pakistan-Russia Inter-Governmental Commission on Trade, Economic, Scientific and Technological Cooperation.
To read our blog on “Russia agreed to give Pakistan crude oil at a lesser cost, Musadik Malik,” click here.