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HomeNationalRussia declines to give Pakistan additional discount on crude oil

Russia declines to give Pakistan additional discount on crude oil

Russia declined to grant Pakistan a 30–40% discount on Russian crude oil, claiming that it was unable to do so because all volumes had already been purchased.

According to local media news, during negotiations in Moscow, the Pakistan delegation which included State Minister for Petroleum Musadik Malik, the joint secretary, and representatives of the Pakistan Embassy in Moscow asked for a discount.

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The negotiations came to an impasse, but the Russian side committed to considering Pakistan’s proposal and later communicated its position through diplomatic channels.

According to sources cited by media reports, Russia can provide oil at the rates it is currently offering to its major client countries, which are stable and solid economies at an appropriate time. All quantities are currently contracted with significant purchasers, they claimed.

The Russian side urged Pakistan to start by keeping its word over the Pakistan Stream Gas Pipeline, which will be built from Karachi to Lahore.

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During the negotiations, the Pakistani side expressed a desire to alter the PSGP project’s model. The Russian side said that only a few provisions of the shareholding agreement needed to be finalized and that the model of the project under the GtG structure had already been established.

The official delegation from Pakistan travelled to Moscow on November 29 for a three-day meeting with Russian officials to discuss the possibility of importing crude oil at a reduced price, as well as the manner of payment and shipping costs.

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