The Petroleum Division aims to purchase Russian crude oil at approximately $50 per barrel, at least $10 per barrel less than the price ceiling imposed by the G7. The current price per barrel of crude oil on the international market is $82.78.
According to sources, Moscow was more concerned with fulfilling all the conditions, including the payment method, the shipping cost with premium, and the insurance cost. Russia would respond regarding the base price discount if the prerequisites were met. They also stated that it would take 30 days to move crude oil from Russian ports, resulting in a $10–$15 per barrel rise owing to transportation costs.
If negotiations between Moscow and Islamabad continue to proceed well, a government-to-government agreement on the import of Russian crude might be reached by the end of March.
In answer to a question, they claimed that the government had decided to restrict the payment method for crude oil imports from Russia. Instead, authorities contemplate delivering the crude oil using PNSC vessels or Russian tankers.
During a news conference, State Minister Musadik Malik claimed that Pakistan would receive a 30% discount on Russian crude oil.
The government will import one crude oil ship from Russia to compare the landed cost to the existing cost of crude imported from Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates.
The secretary for the petroleum division is in Karachi to continue discussions with the top executives of Pak-Arab Refinery Company Limited (PARCO), Pakistan State Oil (PSO), Pakistan Refinery Limited (PRL), and other refineries regarding the import of Russian crude oil for processing into finished products.
If the cost of the test ship is low enough to reduce the prices of petroleum, oil, and lubricants, Pakistan will approve Russian oil shipments within one month.
Due to a lack of US dollars, Pakistan would pay Russia in the currencies of friendly nations such as China, Saudi Arabia, and the United Arab Emirates.
According to the officials, the National Insurance Company Limited (NICL) and Pakistan Reinsurance Company Limited (PakRE) will insure the ship transporting Russian crude.
Owing to G7 constraints, the State Bank of Pakistan (SBP), which was previously unwilling to undertake business with Russian banks, has now shown a willingness to discuss a payment mechanism for oil imports in three different currencies with its Russian counterpart bank.
