During discussions on Wednesday in Moscow, the Pakistani team requested a 30–40% discount on Russian crude oil. According to sources, the Russian side claimed that because all volumes were reserved, it was unable to make any offers at this time.
Dr. Musadik Malik, Pakistan’s State Minister for Petroleum, attended the negotiations in Moscow on behalf of Pakistan.
The state minister was joined by the joint secretary, Capt. (R) Muhammad Mahmood, secretary of petroleum, and ambassadorial representatives of Pakistan in Moscow.
The negotiations ended without a clear resolution, but the Russian side made a commitment to take Pakistan’s demand into consideration and to later communicate its position through diplomatic channels.
Nevertheless, according to the sources, Russia can provide crude at the prices it is currently offering to its major client countries, which are stable and sound economies, at an appropriate time. All quantities are currently contracted with significant purchasers, they claimed.
The Russian side urged Pakistan to start by keeping its word over the Pakistan Stream Gas Pipeline, which will be built from Karachi to Lahore, Punjab.
During the negotiations, the Pakistani side expressed a desire to alter the PSGP project’s model.
According to the Russian side, only a few provisions of the shareholding agreement needed to be completed before the project model under the GtG structure could be finalized.
The official delegation from Pakistan traveled to Moscow on November 29 for a three-day meeting with Russian officials to discuss the possibility of importing crude oil at a reduced price and discussing payment options and shipping costs.
Russian crude oil may be processed at Pakistan’s refineries, and one private refinery has previously used Russian crude oil and produced finished goods from it, according to sources in the industry ministry.
To read our blog “Banks of Pakistan declined to issue LCs for Russian crude oil imports,” click here.
