Russia has refused to give crude oil to Pakistan.
Pakistan was expecting to buy cheaper oil from Russia at a 30-40 percent discount. However, Russia has rejected Pakistan’s request to give crude oil at 30-40 percent discount.
Moscow refused the discount as it said it has no stock of crude oil available. Its crude oil inventory has been committed with other countries, which are economically stable.
Earlier this week on 29th November, a delegation consisting of Dr. Musadik Malik, Minister of State(Petroleum Division), Capt (R) Muhammad Mahmood , Additional Secretary In-charge(Petroleum Division) and other high ranking government officials reached Moscow to request for the discount.
The talks between the two parties ended without a clear conclusion. However. Russia assured Pakistan to consider the request and it would soon share its response via diplomatic channels.
Moreover, Russia mentioned that its crude oil is already cheaper than the oil prices in the global market and can be given to Pakistan at the same rate as other countries. Also, Russia’s crude oil can be easily refined in the Pakistan’s refineries. One private industry in Pakistan already procured Russia’s crude oil and made finished goods from it.
The Russia also urged Pakistan to first honor its commitment to the Pakistan Stream Gas Pipeline (PSGP) project which aims to build gas pipelines from Karachi to Lahore.
During the talks, Pakistan desired to alter the PSGP project model. Russia asserted that the project model under the GTG arrangement has been finalized and only few provisions on the shareholding agreements needs to be finalized. Therefore, Russia did not accept Pakistan’s proposition of altering the project model.