Russia has refused to grant Pakistan a 30-40% discount on Russian crude oil.
An article in “The News” claimed that Russia has refused to grant Pakistan a 30-40% discount on Russian crude oil, stating that it could not offer a discount because all available volumes were already committed.
The Pakistani delegation comprised State Minister for Petroleum Musadik Malik, a joint secretary, and officials from the Pakistan Embassy in Moscow.
The Pakistani delegation had requested a discount on crude oil of up to 40%.
The New article also claimed that the negotiations concluded with no definitive agreement, but the Russian side committed to study Pakistan’s proposal and communicate its decision through diplomatic channels later. However, sources indicate that Russia can supply crude oil at the same rates it offers to its main customer countries, which have robust economies. Currently, all volumes are committed to large customers.
The Russian side demanded that Pakistan first honor its commitment to the Pakistan Stream Gas Pipeline, which will be constructed from Karachi to Lahore.
The Pakistani side expressed its wish to alter the PSGP project’s design throughout the discussions. However, according to the Russian side, the model of the project under the GtG structure has been finalized, and just a few terms of the shareholder agreement remain to be finalized.
The Pakistani delegation left for Moscow on November 29 for a three-day visit to discuss the possibility of importing crude oil at a discounted price, mode of payment, and shipping cost with the Russian authorities.
According to sources within the industrial ministry, Russian crude oil may be refined in Pakistan’s refineries, and one private refinery delivered finished products using Russian crude oil in the past.
