Oil imports talks begin as Pakistan’s delegation to meet Russian officials
A delegation from Pakistan’s government will fly to Moscow on Monday (today) for a three-day visit to meet with Russian officials and discuss the possibility of importing crude oil at a reduced rate as well as payment options, shipping costs, and other issues.
Both parties would also discuss two gas pipelines, including the highly publicised Pakistan Stream Gas Pipeline (PSGP), which is planned to run from Karachi to Lahore, as well as a transnational gas pipeline from Russia via Kazakhstan to Pakistan, one of the Energy Ministry’s top officials told The News.
Pakistan would discuss how to import Russian crude oil, move the $3 billion PSGP negotiations forward, and explore a recently proposed trans-national gas pipeline from Russia through Kazakhstan to Pakistan, he said.
According to the official, Musadik Malik, Secretary of Petroleum Capt. (Ret.) Muhammad Mahmood, and other prominent officials from Pakistan would represent their country. The Pakistani Embassy’s representatives in Moscow will also take part in the discussions.
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.
Russian ships are not permitted to deliver fuel goods to any nation due to sanctions imposed by the US, EU, and UK as a result of the invasion of Ukraine. In the current system, traders buy Russian oil and sell it to the purchasing nation at a premium of 5% to 6%. Because of the premium paid to merchants and the high cost of shipping, this is how the price of the Russian goods also rises.
Oil imports talks begin as Pakistan’s delegation to meet Russian officials
The primary issue for Pakistan if it imports Russian oil will be the method of payment. Rubels are obtained by Russia from the nations that are the buyers, and they are associated with gold.
