Pakistan, which is going through a serious economic crisis, may now have Russia as its only support. After requesting help from several international organizations, Pakistan is now planning to import cheap crude oil from Russia.
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After seeking help from around the world Pakistan Now planning to save his life with the help of Russia. Pakistan is trying to get cheap Russian crude oil from Russia and the price of crude oil is up to $50 per barrel, which will help it deal with cash crunch as well as inflation. Importantly, however, crude oil prices are also $10 per barrel lower than the $60 Russian crude oil price cap on Russian oil.
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The current price of crude oil in the international market is $82.78 per barrel. However, in the face of Western sanctions, Russia is already selling crude oil at a huge discount. Even major importing countries like India and China have shifted a large part of their imports to Russia. In such a situation, Pakistan is also trying to buy cheap crude oil from Russia.
Debt-ridden Pakistan is begging every country
Pakistan is currently mired in debt. Also, his financial condition is bad. That is why it wants crude oil from Russia at a discount. According to ‘The News’, Russia is yet to approve Pakistan’s request. This will happen only when other formalities such as mode of payment, freight cost with premium and terms related to insurance etc. are agreed between the two countries.
Earlier, Pakistan also appealed to the International Monetary Fund and the World Bank for help. To get the grant from the IMF, Pakistan has also taken several steps to reduce expenditure and increase tax collection. According to The News, Pakistan will first buy only one ship of crude oil from Russia, so that it can get an idea of the real price of Russian oil. It is expected that this Russian oil will be delivered to Pakistan by the end of next month.
India and China are also buying cheap oil
Not only Pakistan, India and China are also not far behind in the race to buy cheap oil from Russia. Russia now accounts for more than one-third of India’s total crude oil imports. At the same time, to take advantage of lower prices, Chinese refineries have also increased crude oil imports from Russia. It may touch a new record level in March.
Due to the Russia-Ukraine war, the G7 countries have imposed a $60 per barrel cap on the price of Russian crude oil. The European Union’s facilities for shipping and insurance etc. cannot be used to sell crude oil at prices lower than this. However, Indian refinery companies are importing Russian oil using the UAE currency dirham, so that it can be obtained at less than $60 per barrel.