Finance Minister Miftah Ismail has said that Pakistan is ready to buy discounted Russian oil as long as there is no danger of US sanctions over any such purchase.
Speaking to CNN anchor Becky Andersen on Tuesday, Ismail addressed the question of the country’s stance on buying discounted crude oil from Russia.
On being asked by Becky if Pakistan would be willing to consider buying Russian oil at cheaper rates, much like India is doing, Ismail said they would ‘consider it, of course’.
A day after the EU imposed a 90% ban on Russian oil, Pakistan's Finance Minister @MiftahIsmail tells me if Russia were to offer Pakistan oil at a cheaper rate without incurring sanctions, he would consider it. pic.twitter.com/zlVY3qKdEs
— Becky Anderson (@BeckyCNN) May 31, 2022
Ismail also said that it seemed very challenging and difficult for him to imagine buying Russian oil right now, given the various US sanctions imposed on the country.
He also said that no such deal had been made by Russia as of yet, adding that the previous government was interested in securing such a deal, but Russia had never responded to a letter sent to them by the previous Pakistan Tehreek-e-Insaf (PTI) government.
“The previous government talked about buying oil from Russia but I think Russia is under sanctions and they haven’t responded to the letter written by the previous government,” he told the CNN anchor.
The finance minister also said that Pakistan would be ‘very happy’ to buy wheat from either Russia or Ukraine, depending on which country was willing to sell.
According to reports from Reuters, while US sanctions have been imposed on Russia, there is no restriction on other countries from trading with Russia. The Biden administration is consider adopting a secondary sanction that limits other countries from making such purchases in the future.
PTI leader Shireen Mazari disagreed with Ismail’s remarks, calling him a ‘liar’, and said that there are no sanctions on buying oil from Russia.
The man is a liar! He says after 45 days we will buy oil from Russia if there are no sanctions. Ignorant man! There are NO sanctions on purchasing oil from Russia. Ask India! So what's actually stopping him from buying other than fear of US? pic.twitter.com/wqphQF8dOP
— Shireen Mazari (@ShireenMazari1) May 31, 2022
The problem is not just the US sanction, but Russia is also not willing to give Oil at discounted price to Pakistan. India is a different case for both Russia and America.
PAKISTAN CAN ALSO IMPORT RUSSIAN CRUDE – BUT NOT DIRECTLY – IT HAS TO BE VIA CHINA!
China is using SOE Commodity firms to buy Russian Oil,and NOT the CHINESE SOE, who are refiners – so that sanctions risk, is mitigated.Petro China has stopped Russian Imports
China also has a 2-3 MPBD Oil Pipeline from Russia – SO PRC CAN PLAY WITH RUSSIAN SUPPLIES – AND CHINA IS USING CHINESE FLAGGED SHIPS, TO IMPORT THE OIL,FROM BALTIC PORTS – AND SO.,THERE IS ENOUGH SUPPLY CHAIN DEXTERITY,AND FLEXIBILITY.
THEREFORE, PRC CAN USE SOE COMMODITY FIRMS,OR PRIVATE TRADERS, IN CHINA (AS EU AND US TRADERS HAVE EXITED RUSSIA),TO IMPORT DISC RUSSIAN OIL – REFINE IT IN CHINA, AND EXPORT THE PETROL AND DIESEL,TO PAKISTAN, AT DISCOUNTED RATES !
THERE IS NO SANCTION ON CHINESE FUEL EXPORTS !
EVEN IF THERE ARE SANCTIONS IT WILL ON SOME SMALL TRADING HOUSE
CHINESE SOE REFINERS HAVE UNUSED CAPACITIES (due to COVID)
PAKISTAN WILL IMPORT REFINED PRODUCTS AND SO WILL SAVE ON CONVERSION COSTS,CONVERSION ENERGY AND FREIGHT COSTS
THE REFINED PRODUCTS WILL BE EXPORTED TO GWADAR IN CHINESE FLAG SHIPS !
IF REFINED PRODUCTS ARE IMPORTED – IT WILL BE A G2G DEAL – AND SO,NO LC IS REQUIRED,AND A YUAN IMPORT DEAL CAN BE STRUCK,OR A PKR-YUAN AGREEMENT,CAN BE STRUCK.
PAKISTAN REFINERS CAN DO AN UNPLANNED MAINTENANCE – and go on vacation for some time – to Hainan ! ALSO,PAKISTAN REFINERS MAY NOT BE DESIGNED TO REFINE RUSSIAN CRUDE.dindooohindoo
JIYE JIYE PAKISTAN !