Russia Initiates Oil Exports to Pakistan with No Special Discounts, Minister Confirms 

Russia Initiates Oil Exports to Pakistan with No Special Discounts, Minister Confirms 

Russian Energy Minister Nikolay Shulginov has clarified that while Russia has begun exporting oil to Pakistan, it is not providing any special discounts to the country. Shulginov’s statement, made during the International Economic Forum (SPIEF) in Saint Petersburg, clarifies earlier reports from Russian and American media. 

Addressing the media during the event, the energy minister affirmed Russia’s commitment to maintaining oil deliveries to Pakistan. He dismissed the likelihood of any export restrictions affecting the arrangement. He also played down the role of India—a long-time Russian ally and a firm rival of Pakistan—in the transaction. “In our view, Pakistan is an equally important partner for us as India,” Shulginov added. 

“The commencement of oil deliveries to Pakistan is underway, but it does not come with any special discount. The conditions are the same as for other buyers,” clarified the minister. “A recent shipment was dispatched, and more deliveries are expected in the future.” 

Previously, Shulginov had hinted that Russia might contemplate limiting its gasoline exports and could recommend such a step if necessary. Nevertheless, in an interview with Russia-24 TV, he downplayed the potential of any restrictions on fuel exportation. 

Discussions about export restrictions were prompted by escalating prices in the wholesale market and their subsequent impact on retail, he said. “Our market is adequately supplied with production, our oil refining is expanding, as is the production of motor fuels.” 

Read More: Russia refuses to give Pakistan 30–40% discount on crude oil

Last week, Pakistan’s Prime Minister Shehbaz Sharif announced the arrival and offloading of the first “Russian discounted crude oil cargo” at Karachi. According to the Minister of State for Petroleum, Musadik Malik, the delivery of 45,000 tons is part of a larger 100,000 tons purchase. 

When questioned about Pakistani media reports suggesting that payments were being made in Chinese yuan, Shulginov confirmed, “We agreed that payment would be in the currencies of friendly countries.” 

In addition, Shulginov revealed that barter supplies had been discussed with Islamabad’s authorities, though no decision had been reached yet. “Pakistan has its own refineries and purchases either oil or oil products, based on its needs,” the minister explained. 

However, Shulginov acknowledged that the two countries had not yet agreed on pricing for the export of liquefied natural gas (LNG). While there are discussions concerning long-term contracts, at the moment, the focus is on spot supplies due to high spot gas prices. 

Most Popular

To Top