Breaking: Finance minister Miftah Ismael admits on CNN that PTI govt tried to buy cheap oil from Russia

[zn426]

lot of speculation. 15% reduction in refined product use? thats the kinds stuff which leads to economic collapse.

assuming you refine 34% of your needs, reduce 15%, still leaves with 50% you have to import.

sorry son you are spinning wheels. try reducing your gasoline usage by 15% and let us know how it affects you.

Perhaps you missed the point. If you reduce your imports by 15% and have the refining done at home-that is an immense cost savings.

 

[cricketrulez]

Perhaps you missed the point. If you reduce your imports by 15% and have the refining done at home-that is an immense cost savings.

So increase refining capacity by 2.5X, wonder why no one else thought of that....

 

[Dual Wielder]

Perhaps we should copy the West and steal it instead?

The only time the COAS ventures outside the barracks is to meddle with Pakistan's political affairs, however this current COAS one upped his predecessors and gave the keys to the entire kingdom to his overlords. With this type of treacherous leadership do you really think he are going to venture outside the borders? Uncle Sam will scold him and threaten to away take his pension he worked so hard for i.e. sacrificing Pakistan's future would have been for nothing.. *

 

[cricketrulez]

No offer of Russian oil, polls only after economy fixed: Miftah

In CNN interview, finance minister says he is hopeful agreement with IMF will be reached after budget is presented in early June.

www.dawn.com

When asked about the option of buying oil and wheat from Russia, Mr Ismail said the two sides had talked about it, but since Russia is under sanctions, and they have not yet responded to the request sent by the PTI government, there was no movement on this front.

“whichever country is willing to sell us wheat we would be happy to buy it.””Russia has also not offered us any oil and it is now under sanctions, so it’s very difficult for me to imagine buying Russian oil.”

 

[ziaulislam]

Hi,

Pakistan refineries can also refine Urals Blend too, I have tried explaining it in numerous posts in this very thread. Please also read the following quoted post in another thread.



The following graphics should also rectify any further confusion. Both Arab Light and Urals are classified as Medium Sour, with Urals being on sweeter side.

View attachment 850023

https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/downloads/crude_grades_periodic_table/crude_grades_periodic_table.html?utm_source=blog&utm_content=plattspto&utm_term=editorial

Other than Arab Light, Pakistan has been refining Kuwait Export Crude, if that (at API 30.5 and Sulfur 2.6%) can be handled without any issues by our refineries, why can't Russian Urals?

View attachment 850030

Crude Petroleum in Pakistan | The Observatory of Economic Complexity

Find the latest exports, imports and tariffs for Crude Petroleum trade in Pakistan.

oec.world

I am going to take maryum nawaz word over this mumbo jumbo

 

[cricketrulez]

excellent post on another forum about russian oil. worth reposting here

#shortbread

>>>>>Exactly, the Russians are not willing to extend credit, it's too risky for them. Everyone in the previous and current Pakistani governments know this fact.

It takes 2 months to transport russian crude and one needs to insure the cargo as well. The shipping and insurance costs are exorbitant currently, unless one is dealing in massive volumes it doesn't make a lot of sense.

After all this one doesn't simply shift this crude to supermarket shelves directly, it needs to be refined .... another challenge. A big chunk of Pakistans imports are refined products.

Finally, none of the countries buying discounted russian crude pass such benefits to the consumer. When one heads to the pump, you can't differentiate between russian and saudi crude! Just because 5-10% of the imports being made up of slightly cheaper crude, will not result in lower petrol/diesel prices for the nation.<<<<

 

[Olympus81]

So let me get this straight.

PTI / Establishment agreed that IK should go to Russia asking for cheap oil knowing full well they don’t have a way to refine it in Pakistan.

 

[Olympus81]

Next thing you know.

We cannot import Russian wheat either as Pakistani digestive system won’t be able to digest Russian wheat.

Mental slavery at it’s finest.

 

[RescueRanger]

what a shit show this imported government is.

 

[muhammadhafeezmalik]

How Bloomberg received the announcement of these partial bans.

https://twitter.com/x/status/1531962192454885376

Russia supplies crude oil to North Korea, South Korea, Japan, China etc through pipeline, it will continue to do so, these countries effect little, except Japan, if EU decided to impose tougher sanctions like sanctions imposed on Iran, EU had already banned trading with most of the banks operating in Russia including Central Bank of Russia.

 

[farok84]

Russia supplies crude oil to North Korea, South Korea, Japan, China etc through pipeline, it will continue to do so, these countries effect little, except Japan, if EU decided to impose tougher sanctions like sanctions imposed on Iran, EU had already banned trading with most of the banks operating in Russia including Central Bank of Russia.

Hi,

This is a EU wide ban. It has no bearings on the rest of the world including China, South Korea, North Korea and Japan. Has Pakistan joined EU that it has to follow EU's decisions? Have we sanctioned Russia too?

Please read. The ban applies to EU members.

Russian oil: EU agrees compromise deal on banning imports

30 May 2022

Updated 31 May 2022

EU leaders say they will block most Russian oil imports by the end of 2022 to punish Moscow for invading Ukraine.

The EU-wide ban will affect oil that arrives by sea - around two-thirds of imports - but not pipeline oil, following opposition from Hungary.

Poland and Germany have also pledged to end pipeline imports, meaning a total of 90% of Russian oil will be blocked.

European Council chief Charles Michel said the deal cut off a huge source of financing for the Russian war machine.

It is part of a sixth package of sanctions approved at a summit in Brussels, which all 27 member states have had to agree on.

Russia currently supplies 27% of the EU's imported oil and 40% of its gas. The EU pays Russia around €400bn ($430bn, £341bn) a year in return.

So far, no sanctions on Russian gas exports to the EU have been put in place, although plans to open a new gas pipeline from Russia to Germany have been frozen.

The UK - which gets 8% of its oil needs from Russia - has pledged to phase out Russian oil by the end of the year.

Oil prices climbed on news of the EU embargo, with Brent crude rising above $123 a barrel, its highest level since March.

What is in the EU's sixth set of sanctions?

• Russian seaborne oil to be banned by the end of the year, with a temporary exemption for pipeline oil. Two-thirds of Russian oil arrives by sea
• Pledges by Poland and Germany to stop importing pipeline oil will raise coverage of the ban to 90% of Russian imports
• Russia's largest bank, Sberbank, to be cut off from the Swift payment system, which allows the rapid transfer of money across borders
• Three more Russian state-owned broadcasters banned
• More restrictions on "individuals responsible for war crimes in Ukraine"

EU members spent hours struggling to resolve their differences over the ban on Russian oil imports. Hungary, which imports 65% of its oil from Russia through pipelines, was its main opponent. Hungary's Prime Minister, Viktor Orban, has good relations with Russian President Vladimir Putin.

The compromise followed weeks of wrangling until it was agreed there would be "a temporary exemption for oil that comes through pipelines to the EU", Mr Michel told reporters.

Because of this, the immediate sanctions will affect only Russian oil being transported into the EU over sea - two-thirds of the total imported from Russia.

But in practice, European Commission President Ursula von der Leyen said the scope of the ban would be wider, because Germany and Poland have volunteered to wind down their own pipeline imports by the end of this year.

"Left over is around 10-11% that is covered by the southern Druzhba," Ms Von der Leyen said, referring to the Russian pipeline supplying oil to Hungary, Slovakia and the Czech Republic. The European Council would revisit this exemption "as soon as possible", she added.

A senior EU official confirmed that the three landlocked countries were given an additional guarantee that they could obtain supplies of seaborne Russian oil in the event of an interruption to pipeline supply.

The Russian ambassador to the EU, Vladimir Chizhov, said Brussels had "already approached the limits of what is possible in terms of sanctions".

Speaking to Russian state TV, he predicted "serious problems" if the EU were to try to agree on a gas embargo.

The ban on Russian oil imports was initially proposed by the European Commission - which develops laws for member states - a month ago.

But resistance, notably from Hungary, held up the EU's troubled latest round of sanctions.

Mr Orban declared the agreement a victory for his country, telling Hungarians they could sleep soundly - protected from expensive fuel costs that the embargo would bring to the rest of Europe.

"We succeeded in defeating the proposal of the European Council which would have forbidden Hungary from using Russian oil," he said in a Facebook video.

Other landlocked countries, such as Slovakia and the Czech Republic, also asked for more time due to their dependence on Russian oil. Bulgaria, already cut off from Russian gas by Gazprom, had likewise sought opt-outs.

The cost of living crisis being felt across Europe has not helped either. Sky-rocketing energy prices - among other things - have curtailed some EU countries' appetite for sanctions which could also hurt their own economies.

The EU's oil agreement is a compromise deal - but it's also an important one.

Moscow is heavily reliant on its energy exports, and the EU says this deal will cut more than 90% of Russian oil imports by the end of the year.

But considering all the sabre-rattling and anti-Western rhetoric we've been hearing from Vladimir Putin in recent weeks, I suspect the Russian leader is more likely to say to Europe: "Get ready for some more economic pain because of this embargo. Let's see how long your support for Ukraine lasts."

The Kremlin is aware of the differences of opinion within the EU over what to do about Russia - and you can be sure that Putin is going to try to exploit them.

Russia will look for new markets, but in terms of oil that's not a quick fix. The infrastructure isn't in place to reorient oil exports from Europe to Asia, for example. And if it does sell to Asia - it will have to do so at a discounted price.

There's also the question of Russian gas - an embargo on that could be discussed next.

Ukraine's President Volodymyr Zelensky, who dialled into the summit, urged EU countries to stop their internal "quarrels," stating that they only helped Moscow.

"All quarrels in Europe must end, internal disputes that only encourage Russia to put more and more pressure on you," Mr Zelensky said via video-link.

Latvia's Prime Minister Krisjanis Karins said member countries should not get "bogged down" in their own personal interests.

"It's going to cost us more. But it's only money. The Ukrainians are paying with their lives," he said.

Russia cut off gas supplies to Dutch firm GasTerra on Tuesday for refusing to pay for supplies in roubles. The EU has said paying in Russian currency breaches sanctions and Gazprom has already cut supplies to Poland, Finland and Bulgaria.

EU clinches compromise deal on banning Russian oil - BBC News

The latest round of EU-wide sanctions excludes pipeline oil imports after Hungary opposed a total ban.

www.bbc.com

Which oil pipeline runs into South Korea from Russia, supplying Russian Crude Oil to South Korea? Are you referring to ESPO pipeline? Can EU stop Russian Federation from operating ESPO pipeline?

For payment method, we can use the same method that the rest of the world uses to pay for Russian Oil and Gas.

 

[farok84]

excellent post on another forum about russian oil. worth reposting here

#shortbread

>>>>>Exactly, the Russians are not willing to extend credit, it's too risky for them. Everyone in the previous and current Pakistani governments know this fact.

It takes 2 months to transport russian crude and one needs to insure the cargo as well. The shipping and insurance costs are exorbitant currently, unless one is dealing in massive volumes it doesn't make a lot of sense.

After all this one doesn't simply shift this crude to supermarket shelves directly, it needs to be refined .... another challenge. A big chunk of Pakistans imports are refined products.

Finally, none of the countries buying discounted russian crude pass such benefits to the consumer. When one heads to the pump, you can't differentiate between russian and saudi crude! Just because 5-10% of the imports being made up of slightly cheaper crude, will not result in lower petrol/diesel prices for the nation.<<<<

Hi,

But what about refined products. There are number of active tenders. If we are able to source these at 30% discounted rate. Will it not help end consumers? Lower priced LSFO and HSFO should also reduce cost of Power generation significantly and help in reducing Fuel Adjustment charges, wouldn't it?

https://tenderpso.com.pk:8022/TenderNoticesPOL.aspx

 

[KendoKhan]

Finance minister Miftah Ismael admits on CNN that PTI govt tried to buy cheap oil from Russia. He also says Pakistan cannot buy it because of sanctions on Russia...

https://twitter.com/x/status/1531689835387408385

@Wood @farok84 @ziaulislam @Patriot forever @maithil @FOOLS_NIGHTMARE @Baghial @muhammadhafeezmalik @Jungibaaz @VCheng @blain2 @SQ8 @UKBengali @beijingwalker @Beast

If nations in Europe and Asia are buying cheap oil from Russia, I don't see the problem with Pakistan doing so too. Whilst on a personal level I feel that morally it is not the best outcome for Pakistan, it is ultimately a decision for those in government to make. It is a shame that the present lot in power took exception to the previous government doing the same for the benefit of the people.

As for wheat, it should be mentioned that at present Russia is engaged in widespread wheat theft from Ukraine, so there is some element of due-diligence that the Pakistanis should consider and factor in before making any deals with Russia.

 

[Chat SAMOSA]

Doesn't Ambani have a massive refinery in Gujarat or somewhere near there? May be he can export some refined products to Pakistan, assuming they can pay

 

[ziaulislam]