Talks with the Russian government came to an end without any conclusion as Moscow refused to offer Pakistan a 30–40 percent discount on crude oil.
During the negotiations, A delegation comprising Dr. Musadik Malik, Minister of State (Petroleum Division), Capt (R) Muhammad Mahmood, Additional Secretary In-charge (Petroleum Division), and other senior government officials arrived in Moscow this week to get a deal done on the import of discounted fuel.
However, Russia has pledged to take Pakistan’s request into consideration and to communicate its opinion through diplomatic channels later.
According to sources, Russia can provide oil at the rates that are currently offered to its major client countries, which are stable and solid economies, at an appropriate time. All quantities are presently contracted with significant purchasers, they claimed.
Remember that Russian oil is cheaper than global oil prices and can be sorted in Pakistani refineries, and one private refinery already has previously used Russian crude oil to produce finished products.
The Russian side also requested Pakistan to first honor its commitment to the Pakistan Stream Gas Pipeline (PSGP) project. The project model under the GTG arrangement has already been finalized, with only a few clauses of the shareholding agreement pending completion.
The official delegation from Pakistan traveled to Moscow on 29th November 2022 for a three-day meeting with Russian officials to discuss the possibility of importing crude oil at a reduced price, as well as the mode of payment and shipping costs.
Remember that, any deal in place will help the South Asian nation to save billions of dollars if energy projects with Russia are implemented while purchasing petroleum products from Moscow would relieve pressure on the country’s forex reserves.
Earlier US State Department spokesperson said that Washington has no objections to Pakistan importing Russian crude oil, further claiming that the US currently does have sanctions on Russian energy exports to other countries. The US spokesperson stated that we are aware that a Pakistani delegation was currently visiting Moscow to discuss the possible import of Russian crude oil.