How much discount Pakistan has received on Russian crude oil?

ISLAMABAD — Russian Energy Minister Nikolai Shulginov has clarified that no any exclusive discounts had been given to Pakistan on the import of crude oil. 

Pakistan has received its first shipment of Russian crude oil under an agreement signed between Islamabad and Moscow in April this year. The cargo carrying 45,000 metric tonnes of crude oil arrived at the southern city of Karachi on Sunday while another 50,000 metric tonnes is expected to reach later this month. 

Prime Minister Shehbaz Sharif said that it was discounted Russian crude oil. Taking to Twitter, he worte: “Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow”.

"This is the first ever Russian oil cargo to Pakistan and the beginning of a new relationship between Pakistan and Russian Federation," he added.

Minister of State for Petroleum Musadik Malik also confirmed that the oil was imported on discounted rates. 

But, the statement given by the Russian minister said otherwise. Shulginov said there was no reduced pricing for Pakistan.

"Oil deliveries to Pakistan have begun. There is no special discount; for Pakistan, it is the same as for other buyers," Russian state media quoted minister as telling reporters on the sidelines of an international economic conference in St. Petersburg.

His remarks has raised questions on claims being made by the Pakistan government. 

"We agreed that the payment would be made in the currencies of friendly countries," Shulginov said while responding to question if Pakistan would pay in Chinese currency. He added that the issue of barter supplies was also discussed, "but no decision has been made yet.”

Earlier this month, the Pakistani government allowed its public and private entities to open barter trade with several countries, including Russia and Iran, in order to reduce pressure on foreign exchange reserves. 

The Russian energy minister further said that Islamabad and Moscow had not yet signed any deal regarding export of liquefied natural gas to Pakistan. He noted that "the discussion is about long-term contracts, but so far, we are talking about spot supplies, and spot gas prices are now high."