The agreement may open Pakistan up to new payment options, increasing the use of yuan in cross-border trade between Chinese and Pakistani businesses and financial institutions.
Financial experts believe that since Russia accepted Chinese cash, the change may also enable Pakistan to purchase Russian oil at a lower price. Currently, Pakistan pays for its oil in US dollars.
Early in October, a representative for the US State Department told Dawn that Pakistan would profit from the US decision to “keep Russian oil available” in the market for low- and middle-income nations.
The spokesperson clarified that this loosening should not be interpreted as a move to loosen the sanctions the US had put in place against Russia for invading the Ukraine in February of this year, but he was also quick to note that “other countries will have to make their own choices based on their own circumstances in terms of energy imports.”
Numerous oil importers have also left Moscow as a result of Western sanctions, driving down spot prices for Russian crude relative to other grades to historic lows.
According to figures from the Indian government, increased oil purchases caused imports from Russia to soar to $17.24 billion in April through August of this fiscal year from about $3.2 billion.
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