Pakistan first purchased offshore oil from Russia for yuan

Pakistan has paid for its first import shipment of Russian Urals oil in Chinese currency for the first time, the country's oil minister Musadiq Malik said. According to the information received from the official, the transaction was made at a discount.

The Minister noted that the volume of the pilot purchase amounted to 100 thousand tons, of which 45 thousand tons were moored in the port of Karachi, and the rest are on the way. Pakistan made this purchase back in April. In total, the country intends to target one third of total oil imports to Russian oil.

The Ministry of Foreign Affairs of China commented on the first deal between Russia and Pakistan, noting that this is normal trade cooperation between the two countries and is carried out within the framework of their sovereignty. 

For Pakistan, this deal is beneficial because 80% of the oil it consumes is imported, and Russia offers it at lower prices. Earlier, the country's authorities planned to purchase a batch of oil as a trial run to assess financial and technical feasibility. However, on Monday, the Oil Minister said that all tests and tests had been carried out, and it was found that Russian oil is suitable for processing and sale on the domestic market – Urals will be mixed with 60-70% Arabian light grade. 

It is noted that the choice of the yuan as a payment currency is an important signal. The oil market is increasingly moving away from the use of the petrodollar and prefers alternative currencies such as yuan, rupees and dirhams. However, there are some problems associated with the accumulation of revenue in rupees.