Pakistan Facing 'Economic Crisis' Starts Importing Russian Crude Oil... Scheduled to Arrive Next Month

by Kim Minyoung

Published 20 Apr.2023 20:03(KST)

Pakistan, facing a severe economic crisis, has started importing Russian crude oil at a low price.

[Image source=Yonhap News]

On the 19th (local time), according to foreign media, Musadiq Malik, Pakistan's State Minister for Petroleum, said, "Orders for Russian crude oil have already been placed," and the first tanker carrying the shipment is scheduled to arrive at Karachi Port next month.

Minister Malik added, "If the transaction proceeds smoothly, the import volume could increase to 100,000 barrels per day." However, he did not specify the exact discount rate.

In January, the two countries announced in a joint statement that crude oil and gas trade would be conducted in a way that benefits both economies.

Pakistan is increasingly concerned about a national default due to public debt and inflation.

Pakistan's move to import Russian crude oil is seen as a result of aligned interests between the two sides. Pakistan urgently needs a low-cost energy import plan, while Russia is struggling with crude oil exports due to Western sanctions. Until now, Pakistan has been managing its difficult energy supply through emergency support from China and Saudi Arabia.

Currently, Russia's crude oil exports are limited to countries such as China and India.