LAHORE: Pakistan and Russia have concluded second round of talks over crude oil imports, moving one step forward in deciding mode of payment, sources claim.

Sources claimed Russian crude oil is expected to arrive in Pakistan in May if order was successfully placed. Two sides held talks in Karachi on April 13-15, but no official statement was issued by any of side. Sources said Russian delegates advised Pakistani to stay away from media regarding discount in crude oil price and mode of payment deal. Top functionaries decided not to disclose mode of payment and exact discount. Earlier, technical teams of Operational Services Center (PSC), Russian state-owned entity, held talks for two days on March 21-22 with Pakistan State Oil (PSO) team, which ended without progress on constitution of Special Purpose Vehicle (SPV) responsible not only for importing crude but also for payments.

Commercial analysis has been worked out this time as to whether import of crude from Russia would benefit Pakistan’s economy and to what extent. Since it was analysed that import would be of benefit, Pakistan decided to go for deal.

Sources said Russia during latest talks asked for payment in China’s yuan or rouble, but Pakistan wanted to pay in Pak rupee. “The Russian ship will arrive in 26 days, most probably by middle of May,” they added.

Published in The Daily National Courier, April, 18 2023

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