Landmark discounted oil agreement inked between Pakistan and Russia
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Significant progress has been made in the acquisition of cost-effective oil from Russia, with Pakistan formalizing a long-term oil purchase agreement with Moscow. This agreement is structured on a commercial basis, enabling local refineries to procure oil directly from Russia and have it transported to Pakistan via its ports.
The terms of the agreement specify a fixed price of $60 per barrel, and the initial shipment, carrying 100,000 metric tonnes of crude oil, is scheduled to arrive in Pakistan by December.
Following the implementation of regular oil supply, there will be a government-level agreement, with considerations given to the G7 price ceiling for Russian oil.
Remarkably, Russian crude oil is offered at a rate that is $10 per barrel more economical compared to the prevailing market rates, even after factoring in the removal of the rent premium. During the inaugural trial shipment, Pakistan managed to save an impressive 400 million.
