Pakistan Import Russian Oil: Pakistan, which is on the verge of bankruptcy, has now started procuring cheap crude oil from Russia like India. He is getting this Russian oil at the behest of China. And, Pakistani Petroleum Minister Musadik Malik told that the oil was purchased in Chinese currency. Now the question arises that why did Pakistan use China’s currency ‘Yuan’ to buy oil from Russia.
Pakistan’s Shahbaz government claims that the oil they are buying from Russia will bring down the skyrocketing oil prices in their country, but experts do not seem to agree with it. One reason for this is the significant change in the US dollar dominated export payment policy. In fact, there is not enough dollars left in Pakistan’s foreign exchange reserves, the foreign exchange reserves kept by the Central Bank there are barely enough to cover 4 weeks of controlled imports. In such a situation, Pakistan paid in Chinese currency for its first government-to-government import of cheap Russian crude oil.
The deal was done earlier this year
Reuters reported that the first consignment of crude oil received from Russia at a discount under a new deal signed between Islamabad and Moscow earlier this year reached Karachi on Sunday, June 11. At present it is being landed at the port of Karachi. Petroleum Minister Mussadiq Malik has not yet disclosed the details of the deal including the price or the discount Pakistan will get, but it has been told that the payment to Russia was made in Chinese currency.
Russia is benefiting from this deal
Mussadiq Malik said that Pakistan’s first government-to-government deal with Russia included the purchase of 100,000 tonnes of oil, out of which 45,000 tonnes of oil has reached the Karachi port by sea. Pakistan had agreed to purchase this oil in April. And, the purchase gives Moscow a new outlet to add to growing sales to India and China, as it relieves Western sanctions over the Ukraine war.
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