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Tuesday January 31, 2023

Islamabad-Moscow talks: Pakistan seeks Russian crude at 30-40pc discount

Islamabad, Moscow talks end with no cogent conclusion, but Russian side promises to consider Pakistan's demand

December 01, 2022
Islamabad-Moscow talks: Pakistan seeks Russian crude at 30-40pc discount

ISLAMABAD: Pakistan’s delegation asked for a 30-40 percent discount on Russian crude oil during talks in Moscow on Wednesday. But the Russian side said it could not offer anything right now as all volumes were committed, The News has learnt.

Pakistan was represented by State Minister for Petroleum Musadik Malik during the talks held in Moscow. Secretary Petroleum Capt (retd) Muhammad Mahmood, Joint Secretary and officials of the Pakistan Embassy in Moscow accompanied the state minister.

The talks ended with no cogent conclusion but the Russian side promised to consider the demand of Pakistan and to share its mind later on through diplomatic channels.

However, the sources said that Russia can offer crude at the rates it is providing to its large client countries, which are reliable and sound economies, at a suitable time. Right now all volumes are committed with big buyers, they said.

The Russian side asked Pakistan to first honor its commitment to the flagship project of Pakistan Stream Gas Pipeline to be laid down from Karachi to Lahore, Punjab. The Pakistan side during the talks mentioned its desire to change the model of PSGP project. The Russian side said that the model of the project under GtG arrangement has already been finalised and only some clauses of the shareholding agreement were yet to be finalized.

Pakistan’s official delegation left for Moscow on November 29 on a three-day visit for talks with the Russian authorities to explore possibilities of import of crude oil at a discounted price, mode of payment and shipment cost. According to industrial ministry sources, Russian crude oil can be processed in Pakistan’s refineries, and in the past one private refinery had used Russian crude oil and made finished products out of it.

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