May 5, 2023
1 min read

Pakistan to buy Russian crude with Chinese currency

Sources confided that Pakistan has finalised the per barrel price close to $50-52 against the cap price of G7 countries at $60 per barrel…reports Asian Lite News

Pakistan is most likely to pay for the Russian oil in Chinese yuan with the test cargo carrying 750,000 barrels of crude expected to dock in June.

Pakistan will pay the price of crude most probably in the Chinese currency and the “Bank of China may play its role for transactions”, The News reported on Friday citing an official as saying.

However, the official refused to divulge in crystal clear terms the details about the mode of payment and the exact discount arguing it is not in the interest of the country and the seller also does not want to make it public fearing backlash from the other countries buying Russian oil directly from Moscow.

crude oil, UAE-based Indian national sanctioned by US for smuggling Iranian oil.

“Russia will provide URAL crude in the test cargo and most probably Pakistan Refinery Limited (PRL) will be tasked to refine the Russian crude,” he added.

Commercial analysis of Russian crude has been conducted in favour of Pakistan’s economy but it will further be cross-checked after refining the Russian oil.

The shipping cost of the Russian oil has also been estimated somewhere at $15 per barrel, but it will be finalised after it arrives at the Pakistan port.

Other sources confided that Pakistan has finalised the per barrel price close to $50-52 against the cap price of G7 countries at $60 per barrel, The News reported.

Pakistani refineries have been importing 80 per cent of crude under long-term agreements from ADNOC and Saudi Aramco and in the remaining 20 per cent there is a cushion to purchase Russian oil under on a long-term agreement to some extent.

But the government would also prefer to keep some cushion for purchasing the crude from the international market as the crude price can go down even blow the cost signed under the long-term agreements, The News reported.

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