Claims of a “special” discount on oil have been debunked by Russia.
Oil supplies have commenced, according to Energy Minister Shulginov, who downplays the idea of limiting exports.
MOSCOW: According to Russian and American media sources, Russian Energy Minister Nikolay Shulginov said that Russia has begun exporting oil to Pakistan on the payment in the currency of a friendly country, but he emphasised that there was no particular discount to Islamabad.
Shulginov assured the media last week at the Saint Petersburg International Economic Forum (SPIEF) that his country will increase oil exports to Pakistan and minimised the likelihood of export limits.
Shulginov also tried to minimise India’s role in the pact with Islamabad, despite India being a longtime ally of Russia and an avowed foe of Pakistan. “We believe that Pakistan is just as important a partner for us as India,” he continued.
Oil shipments to Pakistan have resumed, but the minister assured the public that Pakistan will be charged the same price as any other buyer. The first shipment has already left, and more are on the way, he promised.
Shulginov stated last month that Russia was considering limiting its petrol exports and that he would suggest doing so if necessary. He played down the potential of export limits when speaking to Russia-24 TV.
We talked about how wholesale price increases are putting retail prices under stress and how export limits can help. Otherwise, our oil refining and motor fuel production are both expanding, keeping up with demand in the market.
The first “Russian discounted crude oil cargo” has arrived and been offloaded at Karachi, Prime Minister Shehbaz Sharif declared last week. Petroleum Minister of State Musadik Malik said the 45,000-ton shipment was a portion of a 100,000-ton deal.
The Pakistani media reported that the money was being transferred from China, but Shulginov denied this, saying instead, “We agreed that the payment would be made in the currencies of friendly countries.”
Furthermore, he revealed that the issue of barter supplies had been addressed with the authorities in Islamabad, “but no decision” had been made as of yet. To meet its energy demands, Pakistan uses its own refineries and imports crude oil or refined petroleum products, as stated by Shulginov.
To add insult to injury, he said, “for the export of liquefied natural gas [LNG], the countries had not yet found an understanding on prices – the discussion is about long-term contracts, but so far we are talking about spot supplies, and spot gas prices are now high.”
