Russian crude oil to arrive in Pakistan next month

An unidentified photo of Minister of State for Petroleum Dr. Mossadegh Malik addressing a press conference. – app/file

Minister of State for Petroleum Dr. Mossadegh Malik said that the first shipment of crude oil from Russia will reach Pakistan. First week of April, Radio Pakistan reported on Friday.

Giving an interview to a private channel, Malik said that this shipment will provide relief to the people who are suffering from inflation.

While the federal minister did not share more details about the prices, it was earlier learned that the petroleum division was looking to buy Russian crude oil at close range. $50 per barrelAt least $10 a barrel below the price ceiling imposed by the G7 countries on the precious commodity taken from Russia because of the war on Ukraine.

Officials involved in the virtual talks with Russia said News That Moscow is more interested in fulfilling all conditions like mode of payment, shipping cost with premium, and insurance cost before signing the agreement with Pakistan.

The source, who spoke to the publication on condition of anonymity, said Russia would respond after finalizing the terms on the base price concession. He added that it would take 30 days for crude oil to be delivered from Russian ports, which would mean an increase of $10-15 per barrel due to transportation.

Talks between Moscow and Islamabad are moving in a positive direction with hopes that a government-to-government agreement on Russian crude imports could be reached. Finalized before the end of March..

In response to a question, he said that the government has decided that the mode of payment to Russia against the import of crude oil will not be disclosed. However, the authorities are considering whether they should use Pakistan National Shipping Corporation (PNSC) ships or Russian tankers to transport the crude oil.

“We also have to take into account the landing cost of Russian crude oil as the crude will arrive in 30 days, which will bring the shipping cost up to $10-15 per barrel,” the official added, adding that Moscow has Not agreed. discount yet. “We fear that most of the discount will be covered by crude oil shipping costs.”

Earlier in a press conference, the country claimed that Pakistan will get 30% discount on Russian crude oil.

The government will import a Russian crude oil tanker to test the landing cost against the current price of crude oil imported from the UAE’s Abu Dhabi National Oil Company (ADNOC) and Saudi Aramco.

As Pakistan faces a US dollar liquidity crisis, it will pay Russia in the currencies of friendly countries including China, Saudi Arabia and the United Arab Emirates.

The Russian crude oil tanker will be insured by National Insurance Company Limited (NICL) and Pakistan Reinsurance Company Limited (PakRE), officials said.

The State Bank of Pakistan (SBP), which was earlier reluctant to transact with Russian banks due to G7 sanctions, has now discussed with the Russian counter bank the payment mechanism for oil imports in three currencies besides the dollar. Has expressed willingness to do.

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