Russia rubbishes claims of 'special' oil discount

Energy Minister Shulginov says oil supplies have begun; plays down possibility of restricting exports

MOSCOW:

Russian Energy Minister Nikolay Shulginov has confirmed that oil export to Pakistan had begun on the payment in the currency of a friendly country but stressed that there was no special discount to Islamabad, according to Russian and American media reports.

Talking to the media on the sidelines of the International Economic Forum (SPIEF) in Saint Petersburg, last week, Shulginov stressed that his country would ensure more oil deliveries to Pakistan, as he downplayed the possibility of restrictions on fuel export.

Shulginov also sought to downplay any influence of India – and old-time ally of Russia and a staunch rival of Pakistan – in the deal with Islamabad. "We believe that Pakistan is just as important a partner for us as India,” he added.

"Oil deliveries to Pakistan have begun, [but] there is no special discount; for Pakistan, it is the same as for other buyers," the minister said. “A shipment was recently shipped, and there will be more deliveries in the future," he said.

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Last month Shulginov said that Russia was considering restricting its exports of gasoline and would propose such a measure if needed. However, while talking to Russia-24 TV, he downplayed the possibility of restrictions on exporting the fuel.

"We discussed export restrictions in relation to rising prices on the wholesale market ... the pressure from the wholesale market on retail ... Otherwise, our market is provided with production, our oil refining is growing as well as the production of motor fuels."

Prime Minister Shehbaz Sharif announced last week that the first "Russian discounted crude oil cargo" had arrived and offloaded at Karachi. Minister of State for Petroleum Musadik Malik said the shipment of 45,000 tons was part 100,000 tons purchase.

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.

Today is a transformative day. We are moving one step at a time toward prosperity, economic…

— Shehbaz Sharif (@CMShehbaz) June 11, 2023

Commenting on information from the Pakistani media that payment was being made in Chinese yuan, Shulginov said, "We agreed that the payment would be made in the currencies of friendly countries."

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He also confirmed that the issue of barter supplies had also been discussed with the authorities in Islamabad, "but no decision” had been made yet. “Pakistan has its own refineries and buys either oil or oil products, depending on its needs,” Shulginov said.

He also noted that “for the export of liquefied natural gas [LNG], the countries had not yet found an understanding on prices – the discussion is about long-term contracts, but so far we are talking about spot supplies and spot gas prices are now high.”

(AGENCIES WITH INPUT FROM NEWS DESK)