The United States (US) has reportedly allowed Pakistan to open Russian oil trade at discounted rates for a specific time period
According to a State Department spokesman, Pakistan has become one of the beneficiaries of a US decision to “keep Russian oil available” in the market for low- and middle-income nations.
The US Embassy in Islamabad has indicated a willingness to meet with representatives from the Petroleum Division in Pakistan to discuss the procedure for negotiating a temporary reduction in the price of Russian crude oil. Pakistan has previously requested an arrangement with Russia to purchase wheat and oil at a discounted price.
The spokesperson clarified that this relaxation should not be interpreted as a move to loosen the sanctions the US has placed on Russia as a result of its invasion of Ukraine in February of this year, but he was also quick to note that “other countries will have to make their own choices based on their own circumstances in terms of energy imports.”
Earlier, the US had given Pakistan permission to “negotiate a short-term cut-rate deal for Russian crude oil,” but the specifics of this arrangement and the US government’s confirmation of it were unclear.
The State Department official reported, “the United States was able to restrict oil, LNG, and coal imports from Russia given our position as a strong energy producer,” But Washington was aware that all other countries could not afford to do so. “A goal of our discussions with allies and partners is to keep Russian oil available on global markets to buyers in lower- and middle-income countries to help stabilize prices already trending at roughly double pre-pandemic levels while working on ways to restrict Russian revenues from the sales,” the official explained.
However, according to the sources, Russia is already attempting to negotiate long-term discounted contracts with nations at discounts of 30% or more due to their worries about the price cap.
According to sources, the goal of this agreement is to promote energy trade, particularly the cheaper import of Russian oil. In this regard, importers and refineries must buy the seaborne Russian oil at a price at or below the established price ceiling in order to receive the essential services, such as insurance, brokering, bunkering, etc., from any of the coalition countries members. Most G-7 nations, including the United States, have prohibited the import of Russian oil and will not purchase any of the oil made available by the price cap.