Russia riled over Pakistan’s slow progress in importing crude oil

The slow progress on the Pakistani side has frustrated Moscow, according to the Express Tribune, which has hampered Pakistan’s intention to acquire crude oil from Russia.

The Express Tribune was informed by sources that Russia had already voiced concerns regarding Pakistan’s plan to acquire crude oil from Russia and had requested that Pakistan import one crude oil cargo first to demonstrate its seriousness.

In a recent development, however, Russia was disappointed to hear that Islamabad had not begun the procedure it promised to begin with the first shipment of crude oil to Moscow. According to the Express Tribune, Pakistan had promised to establish a new Special Purpose Vehicle (SPV) company that would be in charge of importing Russian oil to Pakistani refineries.

This state-run company will have to handle all matters regarding the import and payment of oil. However, Islamabad had not begun work on this matter and had not registered the SPV, which frustrated Moscow.

Earlier, Pakistan was ready to import one cargo of crude oil from Russia next month, but the first shipment is likely to arrive in May due to the delay in the establishment of the SPV.

The G7 Oil pricing cap mechanism is the matter of concern in the crude oil pricing negotiation with Russia. The United States recently told Pakistan to negotiate the best possible price. As per the sources, there have been several issues in fixing the price of crude oil with Russia.