Islamabad: Cash-strapped Pakistan plans to place its first order for Russian crude oil next month and it will take about four weeks for the commodity to reach the country, Minister of State for Petroleum Musadik Malik said.
Pakistan, which is currently grappling with high external debt and a weak local currency, is desperate to purchase cheap crude at discounted rates from Russia.
Finance Minister Ishaq Dar last year said that the country was considering buying discounted Russian oil, pointing out that neighbour India had been purchasing oil from Moscow and Islamabad also had a right to explore the possibility, Dawn news reported.
Subsequently, Malik travelled to Moscow for talks on issues including oil and gas supplies after which the government announced that it would purchase discounted crude oil, petrol, and diesel from Russia.
In December last year, Russia refused to provide Pakistan with a 30 per cent discount on its crude oil after the Pakistani delegation asked for a reduction in price.
A Russian delegation in January arrived here for talks to finalise the deal, during which the two sides decided to address all technical issues — insurance, transportation and payment mechanism — to sign an agreement by late March.
“After consensus on the technical specifications achieved, the oil and gas trade transaction will be structured in a way it has a mutual economic benefit for both countries,” a joint statement issued by the two sides during the three-day meeting then stated.
In an interview on the Geo News programme Jirga on Saturday night, Malik said that a number of agreements with Russia had been reached and Pakistan would place an order next month.
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