Pakistan pays for first oil shipment from Russia in yuan

Pakistan paid for the first delivery of Russian oil in Chinese currency, writes Reuters, citing oil minister Musadiq Malik. This is a major change in Pakistan’s dollar-dominated payment policy, the agency said.

Russian cargo arrived in the city of Karachi in southern Pakistan on the eve of June 11. Now oil bought at a discount is being unloaded at the port. Malik, speaking to Reuters, did not disclose commercial details of the deal, including the amount of the rebate Pakistan received. According to the minister, oil refining from the Russian Federation “under no circumstances” will be unprofitable.

The fact that Russia had agreed with Pakistan on oil supplies became known in January. The Pakistani side then noted that it plans to buy more than 35% of the total volume of oil imports from Russia. In 2021, Pakistan imported 8.8 million tons of oil, which means that we are talking about the supply of more than 3 million tons of Russian raw materials.

In April, Pakistan placed its first discounted oil order from Russia under agreements reached in January, Malik told Reuters. Then he said that the first tanker should arrive in early May. If everything “goes smoothly”, then the import of raw materials will amount to 100,000 barrels per day, the minister stressed. Initially, the Pakistani company Refinery Limited (PRL) will process Russian oil, later other refineries will join this process.

According to the Federal Customs Service for 2021, Russia supplied Pakistan with 11,600 tons of oil products per year. Oil supplies in 2020 and 2021 from Russia to Pakistan was not.