Russia has refused to sell its crude oil to Pakistan at a discounted rate. Russia rejected Pakistan’s request to give crude oil at a 30-40% discount, saying that it will not be able to offer anything at present as all volumes are committed.

During talks in Moscow, a Pakistan delegation led by State Minister for Petroleum Musadik Malik, a joint secretary, and officials from the Pakistan Embassy in Moscow requested a discount, as per Pakistani media.

The talks ended without a clear conclusion, but the Russian state assured that they will consider Pakistan’s plea and share its decision later via diplomatic channels.

According to media reports, Russia can offer crude at the same rates it offers to its large client countries, which have reliable and sound economies, at a suitable time. They stated that all volumes are currently committed with big buyers.

According to Pakistani media, during the Shanghai Cooperation Organisation summit in Uzbekistan in September, Premier Shehbaz Sharif was told by Russian President Vladimir Putin that pipeline gas supplies to Pakistan were possible since part of the infrastructure was already in place.

Notably, the Russian side urged Pakistan to honour its commitment to the Pakistan Stream Gas Pipeline (PSGP), which will run from Karachi to Lahore and Punjab.

During the talks, the Pakistani side desired to alter the PSGP project’s model. According to the Russian side, the project model under the GtG arrangement has already been finalised, with only a few clauses of the shareholding agreement remaining to be finalised.

On November 29, a representative delegation from Pakistan flew to Moscow for a three-day visit with Russian officials to discuss the possibility of importing crude oil at a reduced price and discussing payment options and shipping costs.

While Pakistan is requesting Russia to consider its demand for discounted crude oil supplies, India has been increasing its oil imports from Russia significantly in recent months.

Due to the surge in global LNG prices, Pakistan’s energy security troubles have been fueled drastically, which in turn has heightened the economic woes for the country.

Pakistan also currently has no long-term LNG supplier with spare supply in the market also fast diminishing owing to the increase in demand from the European Union.

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