Pakistan may start importing Russian crude oil at discounted rate soon

ISLAMABAD: In a major development, Pakistan has agreed to import Russian crude oil at a discounted rate on the offer of Moscow.

During the Inter-Governmental Commission (IGC) meeting being held in Moscow, both sides agreed to restart crude oil trade from January 2025. Pakistan would import one cargo each month under GtG arrangement. In the meeting, Pakistan’s delegation was led by Federal Minister for Energy Sardar Awais Leghari.

“Pakistan Refinery Limited (PRL) will import 12 cargoes from Russia in one year under the new understanding reached between the two countries,” a senior government official, who was part of the meeting, told The News.

Governor State Bank of Pakistan played a pivotal role during the IGC meeting for the payment mechanism. He resolved the mechanism would be made acceptable to both the countries for smooth transactions.

Both sides are upbeat to resolve the issue of payment mechanism through banking channels. The issues, including railways connectivity with Central Asian States and Russia from Pakistan, delayed project of $3 billion Pakistan Stream Gas Pipeline (PSGP) and the way forward to expedite bilateral trade, are being discussed. The final agreements to this effect are to be signed today (December 4), ushering in a new era of cooperation between Pakistan and Russia.

Pakistan Refinery Limited (PRL), the official said, will import Russian crude at a discounted rate. The profit the refinery would earn is to be utilised in its upgrade project besides incentives from government under Brownfield Policy.

According to a press release issued here on Tuesday, Minister for Energy Awais Leghari and Russian Minister for Transport Roman Starovoyt assessed prospects of expanding bilateral connectivity which would not only benefit the two countries but the whole region. The federal minister for energy is visiting Moscow to co-chair the 9th session of Pakistan-Russia IGC.