Cash-strapped Pakistan plans to place its first order for Russian crude oil next month, and it will take about four weeks for the commodity to reach the country, Minister of State for Petroleum Musadik Malik said.
Pakistan, which is currently grappling with high external debt and a weak local currency, is desperate to purchase cheap crude at discounted rates from Russia.
Finance Minister Ishaq Dar last year said that the country was considering buying discounted Russian oil, pointing out that neighbouring India had been purchasing oil from Moscow and Islamabad also had a right to explore the possibility, Dawn News reported.
Subsequently, Malik travelled to Moscow for talks on issues including oil and gas supplies, after which the government announced that it would purchase discounted crude oil, gasoline, and diesel from Russia.
In December last year, Russia refused to provide Pakistan with a 30 percent discount on its crude oil after the Pakistani delegation asked for a reduction in price. A Russian delegation arrived here in January for talks to finalise the deal, during which the two sides decided to address all technical issues — insurance, transportation, and payment mechanisms—to sign an agreement by late March.
“After consensus is reached on the technical specifications, the oil and gas trade transaction will be structured in a way that has a mutual economic benefit for both countries,” a joint statement issued by the two sides during the three-day meeting then stated.
In an interview on the Geo News programme Jirga on Saturday night, Malik said that a number of agreements with Russia had been reached and Pakistan would place an order next month. “However, it will take some time for the oil to reach Pakistan… Nearly 26 to 27 days,” he stated, revealing that the commodity would arrive in the country via sea.
