Exclusive: Pakistan shuns dollar, uses Chinese yuan for Russian oil

Mocha7

Minister (2k+ posts)

Exclusive: Pakistan paid in Chinese currency for discounted Russian oil - Reuters​

By Ariba Shahid and Asif Shahzad

June 13, 20233:55 PM GMT+5Updated 3 hours ago

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ISLAMABAD, June 12 (Reuters) - Pakistan paid for its first government-to-government import of discounted Russian crude oil in Chinese currency, the South Asian country's petroleum minister said on Monday, a significant shift in its U.S. dollar-dominated export payments policy.

Discounted crude offers a respite as Pakistan faces an economic crisis with an acute balance of payments problem, risking a default on its external debt. The foreign exchange reserves held by the central bank are scarcely enough to cover a month of controlled imports.

The first cargo of discounted Russian crude oil arranged under a deal struck between Islamabad and Moscow earlier this year arrived in Karachi on Sunday. It is currently being offloaded at the port in the southern city of Karachi.

Petroleum Minister Musadik Malik, speaking to Reuters by telephone, did not disclose the commercial details of the deal, including pricing or the discount that Pakistan received, but said, the "payment (was) made in RMB)".

He said the purchase, Pakistan's first government-to-government (G2G) deal with Russia, consisted of 100,000 tonnes, of which 45,000 tonnes had docked at Karachi port and the rest was on its way. Pakistan made the purchase back in April.

Pakistan's Refinery Limited (PRL) will initially refine the Russian crude, the minister said. He had earlier referred to the purchase of the shipment as a trial run to judge financial and technical feasibility, but said on Monday that all the tests and trials had been done, which found that the Russian crude was fit to refine and market locally.


COMMERCIALLY VIABLE


He played down concerns around the financial viability and the ability of local refineries to process Russian crude given Pakistan's historical importation of Middle Eastern petroleum products.

"We've run iterations of various product mixes, and in no scenario will the refining of this crude make a loss," Malik said, adding: "We are very sure it will be commercially viable."

It will be blended with around 60-70% Arabian light crude for refining, he said, adding, "No adjustments (were) needed at the refinery to refine the Russian crude."

Malik would not say how much difference the crude will have at the gas station price in the local market, saying, "It will surely make a difference."

Energy imports make up the majority of Pakistan's external payments. Islamabad imported 154,000 bpd of oil in 2022, around the same as the previous year, data from analytics firm Kpler showed.


 

Mocha7

Minister (2k+ posts)

Pakistan's Russian crude shipment paid in Chinese currency​


 

Wake up Pak

President (40k+ posts)
This oil went from - Russia to India - India to UAE - UAE to Pakistan. So, the Indian and UAE middlemen made a bunch of money. Russia to India @ $52 per barrel, then India to UAE sold and bought by the same party @ $X, and then sold to
🇵🇰
@ not less than $69 per barrel. At least $17 per barrel enjoyed by Indian buyer. It was approx a 250000 barrels shipment
🇵🇰
only gets a lollipop that the bought Russian oil. An excuse to reduce oil prices ahead of elections.

https://twitter.com/x/status/1668510186925969408
 

Mocha7

Minister (2k+ posts)
This oil went from - Russia to India - India to UAE - UAE to Pakistan. So, the Indian and UAE middlemen made a bunch of money. Russia to India @ $52 per barrel, then India to UAE sold and bought by the same party @ $X, and then sold to
🇵🇰
@ not less than $69 per barrel. At least $17 per barrel enjoyed by Indian buyer. It was approx a 250000 barrels shipment
🇵🇰
only gets a lollipop that the bought Russian oil. An excuse to reduce oil prices ahead of elections.

https://twitter.com/x/status/1668510186925969408
Source worqas Larka. Lol 😂