The first shipment of discounted Russian crude oil arrived in Pakistan on Sunday. According to Prime Minister Shehbaz Sharif, who announced that oil discharge will start on June 12."I have kept another of my national commitments. I'm happy to report that the first shipment of discounted Russian crude oil has arrived in Karachi and will start to discharge its contents tomorrow" the prime minister tweeted.
"Today is a day of transformation. We are making progress towards prosperity, economic growth, energy security, and affordability " Said the PM . According to him, a "new relationship between Pakistan and the Russian Federation" has begun with the arrival of the first oil shipment from Russia ever to arrive in Pakistan.
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As per the detail of the oil deal between the two nations, the Russian group arrived in Islamabad in January 2023 to hold negotiations to seal the accord. The two nations agreed to deal with all technical concerns, including insurance, transportation, and payment methods, at the three-day summit in order to finalize an agreement by the end of March this year. The oil and gas trade transaction would be structured in a way that has a mutual economic benefit for both countries if consensus on the technical specifications is achieved, according to a joint statement released by the two sides at the time.
According to a contract negotiated between Islamabad and Moscow, State Minister Musaddiq Malik had claimed in April that Pakistan had made its first purchase of discounted Russian crude oil. According to Malik, the first refinery to process the Russian crude will be Pakistan's Refinery Limited (PRL), followed by Pak-Arab Refinery Limited (Parco) and other refineries.
It is relevant to note here that Pakistan had placed its first order for Russian crude oil imports on a trial basis, which has been delivered at a discount of up to $18 per barrel. Currently, traditional Gulf and Arab suppliers, namely Saudi Arabia and the UAE, provide 80% of Pakistan's daily oil needs of about 154,000 barrels. The 100,000 bpd from Russia should significantly lessen Pakistan's reliance on fuel from the Middle East.
