Karachi: Pakistan moved step closer to sealing its loan deal with Russia as team has arrived in Karachi to fine-tune deal on crude oil with counterparts in Pakistan State Oil (PSO) reported citing senior official privy to development. “This time, we are expecting all hurdles will be removed in importing crude oil from Russia,” official said. However, Energy Ministry is tight-lipped over mode of payment and discount on crude oil prices.

It should be noted that last month the technical teams of Operational Services Centre (PSC) Russian state-owned entity held talks for two days on March 21-22 with PSO team, which ended without progress on constitution of Special Purpose Vehicle (SPV) responsible not only for importing crude but also for payments. “Russian delegation is here now to finalise government-to-government agreement, including mode of payment. Russia is currently asking for payment in China’s Yuan or Ruble, but Pakistan wants to pay in rupee,” official told. According to inside sources, once deal is done, Pakistan will place order to Russia for crude oil purchase.  “Russian ship will arrive in 26 days, most probably by mid-May. Current Brent price in international market hovers at $ 85.16 per barrel whereas Russian oil is available at $ 47-48 per barrel.”

Published in The Daily National Courier, April, 14 2023

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