Pakistan has revealed that it will buy cheap Russian oil to cushion the current energy crisis due to the balance of payment.
Pakistan has even been incapable of procuring oil after the banks declined to settle letters of credit (LCs) for the import of crude and petroleum products. The country’s foreign exchange help has lately depleted to about $4.6 billion, barely enough to cover three weeks of implications, especially for oil.
Russian Energy Minister Nikolay Shulginov, who is in Islamabad for the annual inter-governmental commission on trade and economizing, said they are in the final stages of the deal and counted that the oil exports would start by the end of March.
“We have already decided to draft an agreement to sort out all the issues that we have with regard to transportation, insurance, payments and volumes. These issues are in the final stage of the agreement,” Shulginov said in a statement on Saturday.
Russian minister added, “We have already established a timeline of this agreement by the end of March.”
The result comes at a time when the Group of 7 (G7) countries are checking the price cap on exports of Russian oil. They are scheduled to meet in March. Earlier in December, the Pakistani government revealed that Russia had agreed to export oil to the energy-starved nation at a reduced price. In an interview with Geo News TV later in the day, Pakistani junior oil minister Musadik Malik said that the nation looks at 35 percent of its total crude oil need.
“If we have dollars in excess, then we are ready to do the trade in dollars, and if there is a shortage of dollars and we have some other currency in our reserves, we are ready to trade in that.”
“All these things will be finalised in the next 60 days, so that by the end of March the oil supply starts from Russia.”
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