Russia has turned down Pakistan’s request for a 30-40 percent discount on crude oil during talks in Moscow.
According to The News, talks ended on Wednesday with no “cogent conclusion” but the Russian side promised to consider the demand of Pakistan and to share its mind later on through diplomatic channels.
Pakistan was represented by State Minister for Petroleum Musadik Malik during the talks held in Moscow. Secretary Petroleum Capt (retd) Muhammad Mahmood, Joint Secretary and officials of the Pakistan Embassy in Moscow accompanied the state minister.
However, insiders said that Russia can offer crude at the rates it is providing to its large client countries, which are reliable and sound economies, at a suitable time. Right now, all volumes are committed with big buyers, they said.
The Russian side asked Pakistan to first honor its commitment to the flagship project of Pakistan Stream Gas Pipeline to be laid down from Karachi to Lahore, Punjab. The Pakistan side during the talks mentioned its desire to change the model of PSGP project.
The Russian side said that the model of the project under GtG arrangement has already been finalised and only some clauses of the shareholding agreement were yet to be finalized.
Pakistan’s official delegation left for Moscow on November 29 on a three-day visit for talks with the Russian authorities to explore possibilities of import of crude oil at a discounted price, mode of payment and shipment cost.
According to ministry of industries sources, Russian crude oil can be processed in Pakistan’s refineries, and in the past one private refinery had used Russian crude oil and made finished products out of it.