First Russian crude tanker to arrive in May

ISLAMABAD: Islamabad is set to receive the first-ever cargo of Russian crude in May after finalising the commercial terms of the agreement.

The deal includes use of a currency other than dollar for the sale of affordable crude to Pakistan, though the government remains tight-lipped about the details. Minister of State for Petroleum Musadik Malik has previously hinted at the possibility of this option, fueling excitement about the deal.

Malik told an international news agency the deal will see Pakistan buy crude oil only, not refined oil, and imports were expected to reach 100,000 barrels per day if the first transaction goes through smoothly. The minister said Pakistan Refinery Limited will initially refine the Russian crude, with other refineries to be included later after a trial run.

Joint Secretary Shahbaz Tahir Nadeem, the spokesperson for the Petroleum Division, confirmed the finalization of commercial terms but did not disclose the details when contacted by The News. This correspondent also tried to reach Musadik Malik for comments but there was no success.

Talking to the media previously, Malik never denied or advocated for the option of other than dollar currency use, saying this was quite possible. Russian officials raised concerns during talks with their Pakistani counterparts about the media coverage of negotiations, specifically the discount on crude oil prices and the payment mode.

The Russians urged Pakistani officials to keep the deal with Moscow confidential, as they did not want other Russian crude buyers to become aware of it.

As a result, Pakistan’s top officials decided not to reveal the mode of payment or the exact discount. This new deal marks a significant step towards diversifying Pakistan’s oil imports and reducing its dependence on Middle Eastern suppliers, potentially offering significant cost savings for its economy.