Title: First Russian crude oil cargo arrives in Karachi: Shehbaz
Share:
Linkedin
Whatsapp
Facebook
Description:
Prime Minister Shehbaz Sharif on Sunday announced that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge by Monday.
Discounted crude offers much-needed respite to cash-strapped Pakistan in the face of a balance of payments crisis and critically low foreign exchange reserves. Energy imports make up the majority of the country's external payments.
The deal will see Pakistan buy only crude oil, not refined fuels, with imports expected to reach 100,000 barrels per day if the first transaction goes through smoothly.
Pakistan's purchase gives Russia a new outlet for its crude, adding to Moscow's growing sales to India and China, as it redirects volumes from Western markets where its oil has been banned in the wake of the Ukraine conflict.
Read more: Pakistan buys its first cargo of Russian oil
“I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow,” Shehbaz wrote on his official Twitter handle.
I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.
Today is a transformative day. We are moving one step at a time toward prosperity, economic…
— Shehbaz Sharif (@CMShehbaz) June 11, 2023
“Today is a transformative day. We are moving one step at a time toward prosperity, economic growth and energy security & affordability. “
The prime minister said that this was the first ever Russian oil cargo to Pakistan and the beginning of a new relationship between Pakistan and Russian Federation.
“I commend all those who remained part of this national endeavour & contributed to translating the promise of Russian oil import into reality,” he further said.
Pakistan imported 154,000 barrels per day of oil in 2022, relatively flat from the previous year, data from analytics firm Kpler showed. Most of the crude was supplied by the world's top exporter Saudi Arabia followed by the United Arab Emirates. If Russian crude supplies were to reach 100,000 barrels per day, it would mean a potentially big drop for Middle East suppliers to Pakistan.
Russian Energy Minister Nikolay Shulginov led a delegation to Islamabad in January to hold talks on the deal, after which he said oil exports to Pakistan could begin after March. Minister of State for Petroleum Musadik Malik took a proposal to Moscow to negotiate the deal late last year.
Western nations have imposed a $60 a barrel price cap for anyone to buy Russian oil as part of sanctions against Moscow, however India and China have been paying prices above the price cap, according to traders and Reuters calculations.
Published Date: 11-Jun-2023
Share:
Linkedin
Whatsapp
Facebook
