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Russia, Pakistan working on payment mechanism for oil supplies — Pakistani Energy Minister

Awais Leghari noted that at present, the parties are considering the possibility of further supplies, but the key issues are additional financial costs related to oil and the legitimacy of payment mechanisms

MOSCOW, December 24. /TASS/. Russia and Pakistan are collaborating to establish an appropriate payment mechanism for oil supplies, Pakistani Energy Minister Awais Leghari said in an interview with TASS.

"We have been working on oil supplies to Pakistan for a long time. Recently, some transactions were completed in both the state and private sectors," the minister said.

Leghari noted that at present, the parties are considering the possibility of further supplies, but the key issues are additional financial costs related to oil and the legitimacy of payment mechanisms.

"Both parties are now working to resolve these issues, and we expect their swift resolution," he added.

"Pakistan has strong and important relations with some of our international development partners, so we want to ensure that we find a way that will not violate any legal and global obligations we have committed to," the minister said.

"We believe that [with Russia] we still have ample opportunities for economic cooperation through such transactions," he added.

Leghari noted that "so far, it is a little premature to discuss the scale of the solution found and how it will unfold."

On Oil Supplies to Pakistan

In April 2023, Pakistan ordered 100,000 tons of Russia’s Urals oil. The republic referred to this batch as a trial one and intended to test the ability of domestic enterprises to process oil from Russia. In June, a total of 101,000 tons of Russian oil were delivered to the port of Karachi by two tankers. Its recipient was the Pakistan Refining Company (PRL).

In October 2023, the Pakistani government allowed companies to enter into direct commercial contracts with Russian oil exporters.

Pakistan's new ambassador to Russia, Muhammad Khalid Jamali, said in an interview with TASS that the country is interested in expanding supplies of Russian oil, and negotiations are underway with Russia to conclude long-term contracts.

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