Pakistani Prime Minister Shehbaz Sharif announced on Sunday that the first shipment of discounted Russian crude oil has arrived in Karachi under a new agreement between Islamabad and Moscow. Sharif wrote on Twitter: "I am pleased to announce the arrival of the first shipment of discounted Russian crude oil to Karachi, and the unloading will begin tomorrow." He added, "This is the first shipment of Russian oil ever to Pakistan and the beginning of a new relationship between Pakistan and the Russian Federation." A port official stated that the unloading process is set to start this evening.
Pakistan's purchase of Russian oil provides a new outlet, alongside Moscow's increasing sales to India and China, as Russia seeks to redirect its oil supplies away from Western markets due to the conflict in Ukraine. Energy imports constitute the majority of Pakistan's external payments. The country's crude oil imports are expected to reach 100,000 barrels per day following the arrival of the first shipment. There has not yet been confirmation regarding the payment method, but Pakistan recently announced a plan to allow bartering of goods with Russia, Afghanistan, and Iran, which analysts suggest could reduce the need for the U.S. dollar and limit the risk of energy product smuggling across borders.
