Pakistan is planning to use Chinese Yuan to pay for the Russian oil when the test shipment of 750,000 barrels of crude arrives at port in June. Moreover, the cargo could arrive by the end of May, according to a senior official from the Ministry of Energy who spoke to the publication.
According to reports, Pakistan is planning to pay the crude price in Chinese money, and the “Bank of China may play its role for transactions.”
The official refused to provide specifics about the mode of payment and the exact discount, citing concerns about retaliation from other countries buying Russian oil directly from Moscow and saying that doing so would be against the interests of the country.
Pakistan Refinery Limited (PRL) will receive Russian crude oil
Russia will supply URAL crude in the test shipment, and it’s likely that Pakistan Refinery Limited (PRL) will be tasked with refining the crude oil.
Pakistan’s economy benefited from a commercial examination of Russian crude, but these findings will be double-checked after the oil is refined.
The price per barrel for transporting the Russian oil has been estimated at around $15, but will not be determined until the oil reaches the port in Pakistan.
In contrast to the $60 per barrel ceiling set by the G7, Pakistan is reportedly close to finalising a per-barrel price of $50 to $52.
Long-term contracts with ADNOC and Saudi Aramco have allowed the country’s refineries to import 80% of crude, while the remaining 20% leaves wiggle room for the purchase of Russian oil under GtG.
Nonetheless, given that the price of crude can drop even further than the amount agreed upon in long-term contracts, the government would prefer to keep some cushion for purchasing the crude from the international market.
As the international journal reports, “Pakistan had earlier desired to get Russian crude price with a discount close to $50 per barrel, $10 per barrel below the cap price imposed by G7 countries on Russian oil in the wake of the war on Ukraine.”
The decision to import Russian crude under the GtG deal at a 30% discount may not be enough to provide the necessary relief, according to one of the top guns in the coalition administration.
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