According to Pakistani media, an oil tanker carrying Russian crude arrived at the port of Karachi on Tuesday. This marks the second shipment under a deal between Moscow and Islamabad, which was struck in January.
The vessel, named ‘Clyde Noble’, reportedly transported 55,000 metric tons of discounted Urals oil. While it was initially scheduled to arrive on June 20, the shipment was delayed by a week due to the lack of space in the storage tanks of Pakistan Refinery Limited.
Pakistan heavily relies on imports for 70% of its petroleum consumption. On June 12, the country received its first cargo of Russian oil, paying for it in Chinese yuan. This transaction served as a significant shift in Pakistan’s export payments policy, which had traditionally been dominated by the US dollar. The recent delivery is a continuation of the oil trade agreement between Pakistan and Russia signed in January.
Over the past year, economic cooperation between Russia and Pakistan has strengthened as Moscow seeks to diversify its trade partnerships in response to Western sanctions resulting from the Ukraine conflict. Experts believe that the supply of Russian crude to Pakistan could further enhance the ties between the two countries and potentially expand bilateral trade to reach up to $20 billion per year.
The growing economic relationship between Russia and Pakistan indicates a shift towards greater independence and collaboration away from traditional trade partners. Both countries stand to benefit from this partnership, as Pakistan explores alternative markets for its energy needs and Russia expands its presence in the South Asian region.
The delivery of Russian oil to Pakistan not only meets the energy requirements of the latter but also represents a significant step towards reducing its reliance on a single source. By diversifying its oil imports, Pakistan can ensure a stable and uninterrupted energy supply, reducing vulnerabilities associated with geopolitical risks and market fluctuations.
This development also demonstrates Russia’s determination to explore new trade opportunities and tap into emerging markets. As the West imposes sanctions, Moscow is seeking to establish stronger ties with countries that are looking to diversify their trade relations. Pakistan presents itself as an attractive partner, given its strategic location and growing economic potential.
Overall, the arrival of the Russian oil tanker in Karachi is a positive development for both countries. It signifies the strengthening economic cooperation and lays the foundation for closer bilateral ties. As Pakistan continues to diversify its energy sources and Russia seeks to expand its trade partnerships, the potential for further collaboration and mutual benefits appears promising.