Pakistan to Pay for Russian Crude Oil Shipments in Chinese Yuan
(MENAFN) According to reports from local media, Pakistan is planning to pay for crude oil shipments from Russia in Chinese yuan. The sources have revealed that the first shipment of 750,000 barrels is expected to arrive as soon as June, with the transaction being facilitated by the bank of China. However, details on the mode of payment and the discount that Pakistan will receive have not been disclosed, as it is deemed not in the interest of either the buyer or the seller.
An official from Pakistan's Ministry of Energy has stated that Russia will provide URAL crude oil in the test cargo, which will most likely be refined by Pakistan Refinery Limited (PRL). Meanwhile, other sources have reported that Pakistan has agreed to a per-barrel price of around USD50-52, which is lower than the G7 price cap on Russian oil of USD60 per barrel.
In recent months, there has been a ban imposed on Russian seaborne oil exports by the European Unio, G7, and their allies, along with a price cap of USD60 per barrel. Additionally, another embargo has been put in place, which prohibits almost all imports of Russian oil products, while introducing price caps on diesel and other petroleum products. These developments have led to Pakistan exploring alternative means of sourcing crude oil, with the current agreement with Russia being seen as a potential solution.
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