Pakistan has ordered its first shipment of crude oil from Russia, which will arrive in late May or early June. The initial order, carrying 100,000 tons of crude, will be shipped at a discount of up to $18 per barrel, a price that is lower than Platts’ crude oil prices. The purpose of this order is to examine the economic feasibility of refining Russian crude to produce petroleum products. While the United States has cautioned Pakistan about oil deals with Moscow and the price cap imposed by the Group of Seven (G7) rich nations, Russia has offered Pakistan the discount to match the price and freight of better quality Arab Light crude, which Pakistani refineries currently process.
As indicated by Express Tribune report of Zafar Bhutta, Russian rough creates an alternate proportion of refined oil based commodities contrasted with Middle Easterner Light unrefined. Bedouin Light creates 45% high velocity diesel (HSD) and 25% heater oil while Russian rough produces 32% HSD and half heater oil. In this way, Pakistan might require a higher markdown on Russian unrefined in the event that the ongoing lower value neglects to match the expense of Bedouin Light. The installment for oil imports will be made in Chinese yuan while letters of credit for oil imports will be opened by the Bank of China. This installment in Chinese money will assist with staying away from sanctions forced by the US against Russia and will be a huge help for Pakistan given the deficiency of dollars in the country.
