Historic development reported between Pakistan and Russia
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Pakistan's Caretaker Energy Minister, Mohammad Ali, has unveiled plans for a potential long-term agreement to annually purchase between 0.7 million and 1 million tonnes of Russian oil, equivalent to 20,000 barrels per day.
This move comes as a response to the ban on Russian crude oil exports to European markets following Moscow's invasion of Ukraine. Pakistan aims to explore opportunities for more cost-effective oil procurement.
In June of this year, the first shipment of Russian crude oil arrived in Pakistan, and negotiations are currently in progress for a second government-to-government cargo.
Notably, Pakistani refiner Cnergyico achieved a historic milestone by importing the first-ever private-sector shipment of crude oil from Russia. Pakistan has been facing challenges related to high inflation, a foreign exchange crisis, and difficulties in securing liquefied natural gas (LNG) at reasonable prices, stemming from Russia's invasion of Ukraine and subsequent high LNG prices that led to widespread power outages.
In an effort to diversify its energy sources at more favorable rates, Islamabad was planning to discuss a long-term program for importing discounted crude oil from Russia in early October.
A Pakistani delegation, led by the interim energy minister, was scheduled to participate in the Russian Energy Week 2023, held from October 11–13 in Moscow.
