The delivery of the first batch of crude oil from Russia to Pakistan has been postponed from April to May. The Express Tribune reported this on Tuesday, citing sources.
"The delay in the delivery of Russian oil from April to May is because of low efforts of the Pakistani side and difficulties in reaching an agreement on the price of the energy resource," the sources said.
They said Pakistan has not yet started implementing an agreement with Russia to set up a state-owned Special Purpose Vehicle (SPV) company that would be responsible for importing Russian oil to Pakistani refineries. "This state-owned company will also have to deal with all issues related to importing and paying for oil from Russia. Islamabad, however, has not yet started working on this plan and has not registered the SPV," the sources said. - "Because of this delay the delivery of the first batch of Russian oil to Pakistan had to be postponed from April to May."
There are also difficulties with agreeing prices for Russian oil. "Pakistan is hoping to get higher discounts on Russian oil because it produces more fuel oil and less high-quality diesel, which the country needs. This could lead to higher refining costs and less incentive to buy crude from Russia," The Express Tribune's interlocutors believe.
Russia has agreed to receive payments for oil deliveries to Pakistan in three currencies - Russian rubles, Chinese yuan and UAE dirhams. The State Bank of Pakistan and its Russian partner bank are considering creating a mechanism to pay for oil imports in these currencies, which would be a significant relief for Pakistan, the sources said.
In January, Pakistani and Russian government officials reached a conceptual agreement on Russian oil shipments and agreed to agree on logistics, insurance, payment, and export volumes before they began. Pakistan is to draw up a coherent energy security plan. It includes imports of oil, liquefied natural gas, pipeline gas and other fuels from Russia.
GSV "Russia - Islamic World"
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Based on materials from TASS