Russia denies there is a “special” discount on oil.
Shulginov, the minister of energy, says oil supplies have commenced and downplays the idea of limiting exports.
Despite claims to the contrary in Russian and American media, Russian Energy Minister Nikolay Shulginov has acknowledged that Russia has resumed exporting oil to Pakistan in exchange for payment in the currency of a friendly country.
Shulginov told reporters last week in Saint Petersburg, on the eve of the International Economic Forum (SPIEF), that his country will guarantee increased oil exports to Pakistan, while downplaying the potential of limits on fuel export.
Shulginov also tried to minimize 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.
The minister announced that “oil deliveries to Pakistan have begun,” but added that Pakistan would be charged the same price as any other buyer. “A shipment was sent out recently, and more deliveries are on the way,” he promised.
Shulginov stated last month that Russia was considering limiting its gasoline exports and that he would suggest doing so if necessary. In an interview with Russia-24 TV, however, he played down the prospect of export bans on the fuel.
“We talked about export controls in light of the wholesale price increases… the wholesale market’s impact on retail prices… Otherwise, our oil refining and motor fuel production are both expanding, keeping up with demand in the market.
It was stated last week by Prime Minister Shehbaz Sharif that the first “Russian discounted crude oil cargo” had arrived and being unloaded in Karachi. Musadik Malik, minister of state for petroleum, said the purchase of 100,000 tons included the shipment of 45,000.
Asked about reports in Pakistani media that payment was made in Chinese yuan, Shulginov responded, “We agreed that the payment would be made in the currencies of friendly countries.”
He added that barter supplies had been discussed with the authorities in Islamabad, “but no decision” had been made as of yet. “Pakistan has its own refineries and buys either oil or oil products depending on its needs,” Shulginov explained.
Aside from that, 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.”
