ISLAMABAD: Russian Ambassador to Pakistan Albert Khorev recently highlighted that Islamabad has yet to formally approach Moscow for discounted oil purchases, despite Russia’s readiness to supply energy to address Pakistan’s escalating demands amid volatile global prices.
The ambassador’s remarks come at a time when Pakistan grapples with soaring fuel costs and foreign exchange pressures, making the prospect of cheaper Russian crude particularly appealing.
India, by contrast, has aggressively capitalized on Russian discounted oil since 2022, turning Moscow into its top supplier for extended periods.
Data shows India’s Russian crude imports surged from under two percent of total needs before the Ukraine conflict to peaks around thirty-five to forty percent in subsequent years.
This shift allowed New Delhi to secure substantial savings, with estimates indicating billions of dollars saved through discounts often ranging from ten to twenty dollars per barrel below benchmarks.
Pakistan’s reluctance stems from a combination of technical, economic, and political factors that differ markedly from India’s approach.
One primary technical barrier lies in the configuration of Pakistan’s refineries.
Most facilities rely on hydroskimming technology, optimized for lighter, sweeter crudes from the Middle East.
Russian Urals blend, a key export grade, is heavier and higher in sulfur content, requiring more advanced processing capabilities such as coking or hydrocracking units.
Pakistan’s refineries lack sufficient upgrading capacity to handle such grades efficiently without costly modifications or reduced yields.
Experts note that processing Urals crude could lead to lower output of high-value products like diesel and gasoline, diminishing economic viability.
In contrast, India’s large refiners, including those operated by Reliance and state entities, invested in upgrades over years to process diverse heavy sour crudes.
This adaptability enabled seamless absorption of Russian volumes, often blended with lighter grades to optimize output.
Politically, Pakistan maintains deep strategic and economic ties with Gulf Arab states, traditional suppliers of crude and major providers of financial support.
Saudi Arabia, the United Arab Emirates, and others have extended billions in deferred payments, deposits, and aid during Pakistan’s recurrent balance-of-payments crises.
Shifting significantly toward Russian oil risks straining these relations, as Gulf producers view discounted Russian supplies as competition in Asian markets.
Pakistan’s reliance on International Monetary Fund programs and Western financial assistance adds another layer of caution.
While India, as a larger economy with stronger geopolitical leverage, has withstood pressure from the United States and allies over Russian purchases, Pakistan operates under tighter constraints.
Concerns about potential secondary sanctions or reduced support from Washington and Gulf partners have deterred bolder moves.
Although Western sanctions primarily target Russia’s energy sector and shadow fleet operators, importers face banking scrutiny and payment hurdles.
Pakistan’s limited foreign exchange reserves complicate transactions, often requiring workarounds like barter arrangements seen in recent Russia-Pakistan trade deals for goods such as rice and chickpeas.
India navigated similar challenges through diversified payment mechanisms, including rupees and other currencies, and by refining Russian crude for export, indirectly monetizing discounts.
Recent data indicates fluctuations in India’s Russian imports due to tightened sanctions in late 2025, with volumes dipping temporarily before stabilizing.
Nevertheless, Russia remains a key supplier for India, underscoring the pragmatic pursuit of energy security.
For Pakistan, the ambassador’s statement signals openness but places the onus on Islamabad to initiate formal talks.
Discussions between energy ministries have occurred, focusing on broader cooperation in exploration, refining upgrades, and long-term supplies.
Upgrading refineries could address technical hurdles, though such projects demand significant investment amid fiscal strains.
Pakistan’s smaller market size compared to India may also influence the depth of discounts offered by Russia, as larger buyers command better terms.
Global energy dynamics, including Middle East tensions, have driven up prices, amplifying the appeal of alternatives.
Pakistan’s fuel prices have risen sharply in response, prompting public and expert calls to explore all options.
Yet, the interplay of refinery compatibility, alliance dependencies, and sanction risks continues to shape a cautious stance.
Observers argue that without strategic shifts, Pakistan may miss opportunities to ease economic pressures through diversified sourcing.
As bilateral ties with Russia strengthen in other areas, energy cooperation remains a critical test of pragmatism in a constrained geopolitical landscape.
The coming months could see renewed engagement if Islamabad balances domestic needs against external relationships.