The import of Russian crude oil to Pakistan will reach 100 thousand barrels per day after the arrival of the first batch.
The first batch of discounted Russian crude oil has arrived in the Pakistani city of Karachi under a new deal between Islamabad and Moscow. Pakistan’s Prime Minister Shehbaz Sharif announced this on Twitter yesterday.
“This is the first Russian oil supply to Pakistan and the beginning of a new relationship between Pakistan and the Russian Federation,” Sharif said, adding that the oil reduction will begin today.
He also thanked everyone who “contributed to the realization of the promises of Russian oil imports.”
However, it is not yet clear how Pakistan will make the payment. The oil cuts have come as a relief to the country as it faces a payments crisis and risks defaulting on its debt, Reuters reported.
Pakistan recently announced a plan to allow barter trade with Russia, Afghanistan and Iran, which analysts say could reduce the need for dollars and the risk of cross-border energy smuggling.
Energy imports account for the majority of Pakistan’s external payments. It is expected that the importation of crude oil in the country will reach 100,000 barrels per day upon the arrival of the first batch.
Such an oil supply to Pakistan would give Russia a new market besides sales to India and China as Moscow diverts oil from Western markets because of sanctions over its war against Ukraine.
Recall that in April Pakistan made its first order for Russian oil. And in January, representatives of Islamabad and Moscow agreed on the supply of Russian oil. Pakistan hopes that imports from Russia will make it possible to meet up to 35% of its oil needs in the future.
Source: korrespondent
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