Pakistani PM: First shipments of discounted Russian crude oil arrive in Karachi

(Patria) - Pakistani Prime Minister Shehbaz Sharif said that the first shipment of discounted Russian crude oil, agreed under a new deal between Islamabad and Moscow, has arrived in Karachi, Reuters reported.

„I am glad to announce that the first shipment of discounted Russian crude oil has arrived in Karachi and distribution of the oil will begin tomorrow,“ Sharif wrote on Twitter.

„This is the first shipment of Russian oil to Pakistan and the beginning of a new relationship between Pakistan and the Russian Federation,“ he added.

Reuters first reported on the deal in April. The discounted oil offers relief to Pakistan, which is facing a payment crisis and risks defaulting on its debt.

Energy imports account for the majority of Pakistan's external payments. The country's crude oil imports are expected to reach 100,000 barrels per day after the first cargo arrives on Monday.

There was no confirmation on how the payment will be made, but Pakistan recently announced a plan to enable barter trade with Russia, Afghanistan and Iran, which analysts say could reduce the need for dollars and the risk of cross-border smuggling of energy products.