Islamabad-Moscow talks: Pakistan seeks 30-40pc discount on Russian oil

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Islamabad: During the talks held in Moscow on Wednesday, the Pakistani delegation sought a 30-40% discount on Russian crude oil. But the Russian side said it could not commit anything at the moment as the shares are already full.

Minister of State for Petroleum Musadik Malik represented Pakistan in international talks observed in Moscow. Secretary Petroleum Capt (R) Muhammad Mahmood, Joint Secretary, and officials of the Pakistan Embassy in Moscow accompanied the state minister.

Pakistan’s official delegation left for Moscow on November 29 for a three-day visit to discuss the possibility of importing crude oil at a reduced price, mode of payment, and shipment cost with Russian authorities.

Though the talks did not reach a common conclusion, Russia promised to consider the demand of Pakistan thoroughly and also committed to developing a stronger diplomatic channel later.

According to the media, Russia can offer crude at the rates it is currently offering to its large client countries, which have reliable and sound economies, at a suitable time. They stated that all volumes are currently committed with large buyers.

Moreover, Russia requested that Pakistan commit to the Pakistan Stream Gas Pipeline, which will run from Karachi to Lahore, Punjab. During the talks, the Pakistani side expressed a desire to change the model of the PSGP project.

The Russian side then asserted that the project model under the GtG arrangement has already been finalized, with only a few clauses of the shareholding agreement remaining to be proposed.

According to the industrial ministry, Russian crude oil can be processed in Pakistani refineries, and one private refinery has previously used Russian crude oil to produce finished products.