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Pakistan. The first-ever shipment of Russian crude oil has arrived in Karachi

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The Pakistani energy minister announces that Russia has delivered the first oil shipment to the port of Karachi. “The transaction will in no way bring us losses,” said Musadik Malik, referring to concerns about the costs that will be associated with the processing of Russian oil.

45,000 tons of Russian oil are being unloaded at the port of Karachi, Pakistan’s Energy Minister Musadik Malik said on Monday. This is the first ever Pakistan purchase of crude oil from Russia. Payment for the raw material purchased at discounted prices was made in Chinese yuan, Malik noted.

The contract covers 100,000 tons, of which 55,000 are still on the way, said the minister. For Moscow, burdened with sanctions, the transaction means a new market, for Islamabad struggling with financial problems – new business opportunities, commentators assess.

The first-ever shipment of Russian crude oil has arrived in KarachiKARACHI PORT TRUST/PAP/EPA

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Minister Malik informed that the purchase is treated as a trial one. The oil will go to Pakistan’s Refinery Limited (PRL). “The transaction will not result in losses for us in any way,” Malik said, referring to concerns about the costs that will be associated with the processing of Russian oil. So far, Pakistan has processed only raw material from the Middle East. Energy imports account for the largest share of Pakistan’s foreign spending.

The AP agency describes the purchase as a key deal between Islamabad and Moscow, while Pakistani Prime Minister Shabaz Sharif called it “the fulfillment of promises.”

Pakistan bets on Russian oil

Pakistan has been negotiating the purchase of Russian oil since February 2022, when the previous prime minister, Imran Khan, visited the Kremlin hours after the invasion of Ukraine. Minister Malik said that Pakistan is counting on a steady supply of oil and hopes that this will bring down the domestic supply fuel prices. “If we import a third of our oil from Russia, people will feel the cost difference,” he said.

In December last year, an initiative of the European Union, the G7 countries and Australia, setting a cap on the price of a barrel of Russian oil at $60. The mechanism works by prohibiting Western transport and insurance companies from participating in transactions supporting trade above the limit.

The price ceiling was intended to limit Russia’s income from oil sales to third countries, as EU and G7 countries had previously banned or restricted oil imports from this country.

Main photo source: KARACHI PORT TRUST/PAP/EPA



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