Pakistan asks Russia for 30-40% discount on crude oil; Moscow turns down demand

The U.S. has made it clear that it has no objections to Pakistan importing Russian crude oil, saying Washington doesn’t at present have sanctions in place in opposition to Russian power exports to different international locations. File
| Picture Credit score: AP

A Pakistani delegation holding talks with their Russian counterparts has requested for a 30-40% low cost on crude oil, a requirement turned down by Moscow which mentioned it couldn’t provide something proper now as all volumes have been dedicated, in accordance with a media report on December 1.

The delegation — comprising State Minister for Petroleum Musadik Malik, Secretary Petroleum Capt (retd) Muhammad Mahmood, joint secretary and officers of the Pakistan Embassy in Moscow — requested for a reduction throughout talks in Moscow on Wednesday, The Information reported.

The talks ended with no cogent conclusion however the Russian facet promised to think about Pakistan’s demand and to share its resolution afterward by means of diplomatic channels, the paper mentioned, citing its sources.

The paper mentioned that Russia can provide crude on the charges it’s offering to its massive shopper international locations, that are dependable and sound economies, at an acceptable time. Proper now all volumes are dedicated with massive consumers, sources mentioned.

The Russian facet requested Pakistan to first honour its dedication to the flagship venture of the much-touted Pakistan Stream Gasoline Pipeline (PSGP) to be constructed from Karachi to Lahore.

Pakistan’s official delegation left for Moscow on November 29 on a three-day go to for talks with the Russian authorities to discover potentialities of import of crude oil at a reduced worth, mode of fee and cargo value.

Citing industrial ministry sources, the paper mentioned that Russian crude oil might be processed in Pakistan’s refineries, and up to now one personal refinery had used Russian crude oil to ship completed merchandise.

The U.S. has made it clear that it has no objections to Pakistan importing Russian crude oil, saying Washington doesn’t at present have sanctions in place in opposition to Russian power exports to different international locations.

“We recognise the stress that governments are dealing with to safe reasonably priced gas provides,” the paper quoted a U.S. state division official as saying.

“We have now been very clear that every nation should make its personal decisions, primarily based by itself circumstances, by way of power imports,” the official added.

Nevertheless, the spokesperson warned that Russia’s actions in Ukraine and Europe have proven that it was not a dependable provider of power, including that the U.S. continues to encourage steps to scale back long-term dependence on power provides from Russia.

Forward of talks with Russia, Finance Minister Ishaq Dar had mentioned that the delegation would maintain talks with the Russian oil authorities to chop a possible import deal.

In the previous few months, Russia has turn into India’s high oil provider in October, surpassing conventional sellers Saudi Arabia and Iraq.

China’s energy-hungry financial system is among the largest clients for Russian oil and fuel. Its purchases greater than doubled in contrast with a yr in the past, to $10.2 billion in October, as Chinese language importers took benefit of reductions supplied by Moscow.

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