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Tuesday, June 4, 2024

Islamabad-Moscow talks—Pakistan asks Russia for 30-40% discount on crude oil

The Islamabad-Moscow talks come to an end without a clear conclusion, but the Russian side promises to take Pakistan's demand into consideration.

Russia refused to provide Pakistan a 30–40% discount on Russian crude oil, claiming that all volumes were already committed and that it was unable to make any offers at this time.

The Pakistani delegation, which included State Minister for Petroleum Musadik Malik, the joint secretary, and representatives of the Pakistani Embassy in Moscow, requested a reduction in the price of crude oil during the negotiations in Moscow.

The meetings came to a close without producing a clear resolution, but the Russian side made a commitment to take Pakistan’s demand into consideration and to later communicate its position through diplomatic channels.

Sources claimed that Russia can, nevertheless, at a proper time, sell oil at the rates it is currently offering to its major client countries, which are reliable and sound economies. They said that significant customers are currently committed to all quantities.

The Russian side urged Pakistan to start by keeping its word over the Pakistan Stream Gas Pipeline, which will be built from Karachi to Lahore, Punjab.

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During the negotiations, the Pakistani side expressed a desire to alter the PSGP project’s model. The Russian side said that only a few provisions of the shareholding agreement needed to be finalised and that the model of the project under the GtG structure had already been established.

The official delegation from Pakistan travelled to Moscow on November 29 for a three-day meeting with Russian officials to discuss the possibility of importing crude oil at a reduced price, as well as the manner of payment and shipping costs.

Russian crude oil may be processed at Pakistan’s refineries, and one private refinery has in the past used Russian crude oil to supply completed goods, according to sources in the industry ministry.