Pakistan To Start Importing Russian Crude Oil In March

Pakistan To Start Importing Russian Crude Oil In March
Pakistan's imports of Russian crude oil are expected to start in late March. Russian energy minister Nikolay Shulginov said that Pakistan would pay for its imports of crude oil in the currencies of friendly nations.

Shulginov is in Islamabad for an annual intergovernmental commission on trade and economic relations between Pakistan and Russia.

At a joint press conference with Minister of Economic Affairs Ayaz Sadiq, Russia's energy minister said, "We have decided that the payments would be done in the currencies of friendly nations". Shulginov added that the energy trade between Russia and Pakistan will be organized in such a way that it would be advantageous to both countries.

However, neither of the two ministers provided information on the magnitude of the anticipated acquisitions, and no mention of the friendly countries’ names was made either.

It is being widely speculated that, apart from the Russian Ruble or Pakistani Rupee, the two countries could trade in the Chinese Yuan to overcome sanctions and financial embargoes imposed by Western countries on Russia due to the Ukraine conflict. Pakistan is eagerly seeking discounted Russian energy to stabilize its local supply chains and overcome a financial crunch.

Musadik Malik, Pakistan's minister of state for petroleum, has said that Islamabad intends to buy nearly 35% of its overall crude oil requirements from Russia.

In delegation-level talks, the two countries had agreed to start providing crude oil to Pakistan in late March this year, according to Shulginov.