(MENAFN) According to reports in the local media, the government of Pakistan is likely to pay for shipments of crude oil from Russia in Chinese yuan, with the first cargo of 750,000 barrels expected to dock as soon as June. The transaction is expected to be facilitated by the Bank of China, as per an unnamed official from the Ministry of Energy. While the exact mode of payment or discount that Pakistan will receive has not been disclosed, the official mentioned that the information is confidential and not in the interest of either the buyer or seller to release it.
It has been reported that Russia will provide URAL crude in the test cargo, and Pakistan Refinery Limited (PRL) is likely to be tasked with refining the Russian crude. The sources have indicated that Pakistan has agreed on a per-barrel price of around USD50-52, which is lower than the G7 price cap on Russian oil of $60 per barrel.
It is worth noting that the EU, G7, and their allies introduced a collective ban on Russian seaborne oil exports in December, along with a price cap of USD60 per barrel. In addition, another embargo that bans almost all imports of Russian oil products, as well as introducing price caps on diesel and other petroleum products, came into effect on February 5.
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