Page 12 - AsianOil Week 12 2023

AsianOil POLICY AsianOil

Pakistan waits for Russian crude,

US reminds of price cap

PAKISTAN PAKISTAN is awaiting its first shipment of dis- Russia.
counted Russian crude oil in early April, accord- In a recent interview with the Express Trib-
Pakistan is struggling ing to Pakistani media reports. Islamabad has une, US State Department official Geoffrey Pyatt
to ease its acute energy been negotiating with Moscow for several reminded Pakistan of the price cap and said that
crisis. months in the hope of securing a deal that will Russia is not a reliable energy partner.
allow some alleviation of the country’s foreign “This is a buyer’s market when it comes to
currency crisis and curbing rising inflation. Russian crude oil,” Pyatt said in the interview. “It
Russia is reported to be reluctant to agree to is a good time for Pakistan to get the best price
the deal, considering the dire financial circum- that they possibly can.” Pyatt said the price cap
stances of Pakistan, and has proposed that a policy “aims to empower countries like Pakistan
test delivery be made in order to determine the or India, who are still doing business with Rus-
landed cost. The price cap set by G7 countries sia to hopefully make their position stronger in
on purchases of Russian oil is $60 per barrel. negotiations to get the best possible price.”
Reports say that a price of $50 per barrel has So precarious is the expense of the shipment
been agreed with Russia, but that transporting to the economy that Pakistan is reported to be
the crude to Pakistan could entail a further cost undecided as whether to use a Russian tanker
of $10-15 per barrel. or one from the Pakistan National Shipping
If Pakistan can arrange the continuing deliv- Corp. (PNSC). The tanker is to be insured by
ery of Russian oil, it could help the country’s the National Insurance Company Ltd (NICL)
failing economy, which in recent months has and the Pakistan Reinsurance Company Ltd
experienced a number of calamities from power (PakRE). The State Bank of Pakistan (SBP) is said
outages to extensive flooding to a severe drain to be involved with negotiating with a Russian
on foreign currency funds, and political unrest. bank over payment for the cargo.
Reports say that Pakistan will pay for the ship- Even once the crude oil arrives in Pakistan, it
ment with the currencies of China, Saudi Arabia still remains unclear whether Moscow will agree
and the UAE, all of which are seen as friendly to to go ahead with a deal. ™

P12 www. NEWSBASE .com Week 12 24•March•2023