Pakistan Bought Discounted Russian Oil Using Chinese Yuan
Pakistan bought its first shipment of crude oil from Russia by using the Chinese Yuan as a currency. This is a fundamental shift from the country's policy of using the US Dollar for imports.
Pakistan, which is already facing an economic crisis, will get a much-needed respite by switching to the Chinese Yuan. In addition, the country also got the Russian crude oil at a discount - The exact extent of the discount was not disclosed by the South Asian country.
According to experts, Pakistan only has enough funds to allow 30 days' worth of controlled imports. Under such circumstances, a switch towards the CNY will appear as a much-needed life support to the country.
45K Tonnes Of Crude Oil Reached Karachi Port
The first cargo ship carrying Russian crude oil reached the Karachi port on Sunday. According to Pakistan's Petroleum Minister, the payment for the shipment was made in RMB. When asked about the discount and the price of the crude oil, he decided not to share any details.
According to the Minister, this is the first G2G deal between Pakistan and Russia for crude oil. Overall, Pakistan is going to buy 100K tonnes of crude oil, while around 45K tonnes have already reached the port at Karachi.
The purchase of the crude oil was made in April while the first delivery was made in June which means the shipment took at least 2 months to reach its destination. Available reports suggest that the grade of this crude oil is Urals which is considered to be a light crude.
The recent purchase from Pakistan has allowed Moscow to find a new market for its crude oil after all sanctions from the Western countries.
For now, the oil refineries will run tests on the Russian Crude oil to figure out whether it is commercially feasible to work with this crude quality or not.