Pakistan is expected to pay for a test cargo of 750,000 barrels of Russian oil in Chinese Yuan, with the cargo scheduled to arrive in June, according to a report.
A senior official from Pakistan’s Ministry of Energy revealed that the Bank of China may facilitate the transaction, but did not divulge details of the mode of payment or discount offered.
The crude will likely be provided by Russia, with Pakistan Refinery Limited tasked to refine it.
While commercial analysis of Russian crude supports Pakistan’s economy, the per-barrel price is estimated to be around $50-52, lower than the G7 countries’ cap price of $60 per barrel.
Pakistan imports 80% of its crude from ADNOC and Saudi Aramco under long-term agreements, with the remaining 20% reserved for international market purchases as a cushion against price fluctuations.