On Thursday, Pakistan announced that it had obtained discounted Russian crude oil with the approval of the United States, and that the first shipment is set to arrive in May.
During a conference in Washington focused on the relations between the U.S. and South Asia, the Pakistani ambassador to the U.S., Masood Khan, stated that “We have placed the first order for Russian oil, and this has been done in consultation with the United States government. There’s no misunderstanding between Washington and Islamabad on this count.”
According to Khan, “They have suggested that you are free to buy anything below or up to the price cap, and we have abided by that agreement. I think Washington is fine with that.”
Last week, Petroleum Minister Musadik Malik informed Reuters that Pakistan had made its first purchase of Russian crude.
Due to Pakistan’s current situation of low foreign exchange reserves, the country has been in dire need of discounted oil. Energy imports account for the majority of the country’s external payments.
The agreement between the two countries stipulates that Pakistan will only purchase crude oil. Islamabad’s stated goal is to increase imports to reach 100,000 barrels per day.
On December 5 the G7 instituted an oil price cap of $60 per barrel on Russian exports, in order to reduce Moscow’s ability to raise money to fund its war in Ukraine.