File photo. Ali Al-Saadi—AFP
Prime Minister Shehbaz Sharif on Sunday confirmed that the first cargo of discounted crude oil from Russia had reached Pakistan, adding the discharge of oil will commence tomorrow (June 12).
“I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow,” he posted on Twitter on Sunday night. “Today is a transformative day. We are moving one step at a time toward prosperity, economic growth, energy security, and affordability,” he said, adding the arrival of the first-ever Russian oil cargo in Pakistan marked the beginning of a “new relationship between Pakistan and the Russian Federation.”
The prime minister concluded his statement by commending everyone who had played a role in the “national endeavor” and contributed to translating the Russian oil imports into reality.
According to state-run APP, the first shipment of crude oil from Russia would be tested for its utilization in Pakistan, with the process to be completed within 24 hours. It said the first ship of 100,000 tons of Russian crude had reached Oman’s Daqm port, from where over 45,000 tons were transported to Karachi, with the remainder set to reach Pakistan by June 20.
The process to import oil from Russia commenced under the previous government, with then-prime minister Imran Khan claiming he had discussed the matter with Russian President Vladimir Putin during his visit to Moscow. However, subsequent statements from Russia negated this, stating that while the matter had been discussed, there was no formal agreement.
Last year, Finance Minister Ishaq Dar announced that Islamabad was considering purchasing discounted Russian oil along the pattern of neighboring India, with State Minister for Petroleum Musadik Malik visiting Moscow for talks that concluded with the government announcing it would purchase discounted crude oil, petrol, and diesel from Russia. The deal was finalized in January 2023, with both countries announcing they would address technical issues such as insurance, transportation and payment mechanism ahead of inking a formal agreement in March.
In April, Malik told media Pakistan had placed its first order for discounted Russian crude oil, maintaining the initial import would be tested for utility and cost in Pakistan. If proven successful, he said, the imports could be increased with any discount availed being passed onto consumers in a bid to reduce fuel tariffs in the country.