Russian Oil Payment in Chinese Currency

Russian Oil Payment in Chinese Currency

A significant shift in US-dominated Dollar currency is seen in import export policies. Pakistan also paid for discounted Russian Crude oil in Chinese currency as the first import reached Pakistan on sunday.

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The first cargo of discounted Russian Crude oil arranged under a new deal created a different relation between Islamabad and Moscow for the first time. The oil is currently being offloaded at the port in Karachi.

The petroleum minister of Pakistan Mussadik Malik did not disclosed the commercial details of deal yet, including the pricing and discount Pakistan got but only told that payment is made in Chinese currency.

First Government-to-government deal

It is the first ever government-to-government 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, the purchasing process started 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.

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The crude oil to Pakistan was previously supplied by World’s top exporter Saudi Arabia followed by the United Arab Emirates. The 100,000 bpd from Russia in theory greatly reduces Pakistan’s need for Middle Eastern fuel.

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