KARACHI: Pakistan is considering resuming imports of Russian crude oil, with the issue expected to be explored during the prime minister’s visit to Russia next month.
Pakistan previously imported Russian crude in 2023, when two refineries purchased 200,000 metric tonnes of Urals crude. The imports were subsequently halted after the cargoes proved financially unviable and amid the rising anti-Russian oil sentiments post the Russia-Ukraine war.
The potential resumption of imports was discussed in recent high-level meetings of the Petroleum Division with representatives of the oil sector, according to sources familiar with the matter. Petroleum Minister Ali Pervaiz Malik chaired a meeting earlier this week and sought input from refineries and other industry stakeholders on the feasibility of importing Russian crude.
Industry representatives were informed that the prime minister’s planned visit to Moscow in March would include discussions on energy cooperation, including the possibility of crude imports from Russia.
The government requested proposals from the oil sector covering commercial arrangements, logistics and financing structures for any potential imports. However, industry officials reportedly told the minister that importing Russian crude is currently not viable, primarily due to the absence of a workable mechanism to open letters of credit (LCs) for such transactions. “No bank is willing to open an LC for this import,” one participant said.
Oil sector representatives also questioned the timing of the initiative, noting that even India has scaled back its purchases of Russian crude amid mounting pressure from the United States. In their view, prevailing geopolitical conditions reduce the likelihood of Pakistan securing sustainable supplies.
They added that Russian crude is not necessarily commercially advantageous for local refineries, as it yields a higher proportion of furnace oil and typically requires blending with Middle Eastern grades to optimise output of diesel and petrol.
Pakistan relies heavily on imported crude to meet domestic fuel demand. In addition to earlier Russian cargoes, the country has recently imported crude from the US following Islamabad and Washington’s announcement of enhanced cooperation in the energy sector last year.
