Pakistan and Russia have signed a historic agreement, and Pakistan has received its second shipment of Russian crude oil. The oil, weighing 55,000 metric tonnes, arrived on a vessel named ‘Clyde Noble’. This shipment comes after the processing of the first shipment, which was 45,000 metric tonnes and arrived before mid-June.
This agreement creates a new market for Russia’s crude oil and allows Moscow to divert oil from western markets, where it has faced restrictions due to the crisis. It also provides relief for Pakistan, which is facing financial challenges like a balance of payments issue and low foreign exchange reserves. Pakistan spends a significant amount of its foreign payments on energy imports.
In 2022, Pakistan imported 154,000 barrels of oil per day, mainly from Saudi Arabia and the United Arab Emirates. If Russian crude production reaches 100,000 barrels per day, Pakistan’s dependence on Middle Eastern suppliers could significantly decrease.
The import of discounted crude oil is expected to help the Pakistani government provide relief to the public amidst inflation, as stated by Minister of State for Petroleum, Musadik Malik.
