ISLAMABAD: Talks between Pakistan and Russia over crude oil imports have concluded, with significant progress made on the mode of payment, according to officials.
Russian crude oil is expected to reach Pakistan in May if the order is successfully placed, officials added, noting that some minor issues remain to be resolved within the coming few days. The second round of negotiation was held in Karachi on April 13-15, but officials are tight-lipped on disclosing the details.
During the negotiations, Russians raised concerns over the reporting of the negotiation in the media, particularly regarding the discount in crude oil price and payment mode, stressing the Pakistani counterparts to ensure the deal with Moscow is kept secret.
The top officials have also decided not to disclose the payment mode and the exact discount.
Pakistan-Russia oil talks
Earlier, the technical teams of the Russian Operational Services Center held detailed talks for two days on March 21-22 with the team of Pakistan State Oil (PSO), which ended without any progress on the constitution of a Special Purpose Vehicle responsible not only for importing the crude oil but also for the payments.
The State Bank of Pakistan earlier asked some local commercial banks, including the National Bank of Pakistan (NBP), to open letters of credit (LCs) for importing Russian oil. Pakistan’s local commercial banks are ready, but with some hesitance, mainly due to the G7 countries’ regulations following the price cap of $60 per barrel or below and making the payments under the Society for Worldwide Interbank Financial Telecommunications (SWIFT) arrangement.
An order would be placed soon, and the Russian ship is expected to arrive in 26 days, most probably by the middle of May. The current Brent price in the international market is $85.16 per barrel, whereas Russian oil is available at $47-48 per barrel.
