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

[khansaheeb]

The audacity of PTI trying to buy cheap oil and pass it on to the people, at least with PDM Pakistanis are able to get oil at premium prices now.. those who can afford it at least.. just another masterstroke by Bajwa and co. the country has gone to the dogs..

Can we expect oil to become so expensive that this mix achar gov deems it another 'luxury' good, thus banning it as an import and recommend donkey and carts as a means of transport instead? *

Perhaps we should copy the West and steal it instead?

 

[farok84]

I think there is difference in commodities, we sell rice to Iran and we buy vegetable fruits from Iran, but we can't buy oil, gas, LPG, plastic, fertilizer, cement etc.

Hi,

Why can't we pay for Russian O/G, the same way the rest of the world is paying for it?

https://twitter.com/x/status/1531912390899793921

https://twitter.com/x/status/1531925059891515394

https://twitter.com/x/status/1531910923065077760

There was a recent report by Bloomberg on Pakistan's Pmln led government considering to buy long term Lng from Russia, wondering how Pmln is planning to pay for it?

https://twitter.com/x/status/1529791699685298176

 

[muhammadhafeezmalik]

Hi,

Why can't we pay for Russian O/G, the same way the rest of the world is paying for it?

https://twitter.com/x/status/1531912390899793921

https://twitter.com/x/status/1531925059891515394

https://twitter.com/x/status/1531910923065077760

There was a recent report by Bloomberg on Pakistan's Pmln led government considering to buy long term Lng from Russia, wondering how Pmln is planning to pay for it?

https://twitter.com/x/status/1529791699685298176

This is six days old story, while Miftah is quoting sanctions imposed just yesterday bu EU

Russian oil: EU agrees compromise deal on banning imports

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

www.bbc.com

 

[farok84]

This is six days old story, while Miftah is quoting sanctions imposed just yesterday bu EU

Russian oil: EU agrees compromise deal on banning imports

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

www.bbc.com

Hi,

Does this apply to Pakistan? It is a ban by EU on Russian Oil effective by end 2022, are we part of EU, when did that happen?

Please read the Bloomberg article mentioned in earlier post related to ineffectiveness of sanctions on Russia, tweeted out by the writer few minutes ago.

 

[VCheng]

Russian Oil and Pakistan’s Dilemma - Daily Times

Former Prime Minister of Pakistan Imran Khan has been a strong advocate of establishing a trade relationship with Russia. In his last speech to the nation, a day before the vote of no-confidence was moved against him, he praised India for not bowing to the US pressure and buying oil from Russia...

dailytimes.com.pk

>>>>According to Pakistan’s development plan for the oil and gas industry, the country has a total of six operational refineries with a processing capacity of up to 19.4 million tonnes of crude oil annually. However, owing to several financial and technical issues, the total output of these refineries in the last financial year has been around 11.6 million tonnes. As a result, the local refineries can only meet 20 per cent of the local petroleum requirements; therefore, the remaining 80 per cent is met by importing crude oil and refined products worth $2.22 billion, as reported in April.>>>

So even if pakistan refinery are operating at 100% capacity, They will meet only 34 of of the countries petroleum needs.

So why is all this hoopla about russian oil purchase when you bottle neck is in refining

What am i missing?

@Norwegian @VCheng @ziaulislam @farok84

Not missing anything, except maybe that Russian oil is just another truck kee battee.

 

[Jango]

This is six days old story, while Miftah is quoting sanctions imposed just yesterday bu EU

Russian oil: EU agrees compromise deal on banning imports

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

www.bbc.com

We should have a facepalm emoji option as well to use for posts like these.

 

[Norwegian]

This is six days old story, while Miftah is quoting sanctions imposed just yesterday bu EU

Russian oil: EU agrees compromise deal on banning imports

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

www.bbc.com

Lol. EU cut off oil and gas imports from Russia. It's their own independent energy and strategic policy. They are not sanctions for non EU countries. No country outside EU will be punished for purchasing oil and gas from Russia

Does this apply to Pakistan? It is a ban by EU on Russian Oil effective by end 2022, are we part of EU, when did that happen?

Patwarism
@muhammadhafeezmalik

We should have a facepalm emoji option as well to use for posts like these.

Can somebody please make emoji of this?

 

[muhammadhafeezmalik]

Hi,

Does this apply to Pakistan? It is a ban by EU on Russian Oil effective by end 2022, are we part of EU, when did that happen?

Please read the Bloomberg article mentioned in earlier post related to ineffectiveness of sanctions on Russia, tweeted out by the writer few minutes ago.

Miftah was saying that he will look into (fresh) sanctions whether these effect Pakistan or not, if not he will go forward with the deal though it is very unlikely.

Sanctions​

4. The European Council is committed to intensify pressure on Russia and Belarus to thwart Russia’s war against Ukraine. The European Council calls on all countries to align with EU sanctions. Any attempts to circumvent sanctions or to aid Russia by other means must be stopped.

European Council conclusions on Ukraine, 30 May 2022

On 30 May, the European Council adopted conclusions on Ukraine.

www.consilium.europa.eu

 

[farok84]

Miftah was saying that he will look into (fresh) sanctions whether these effect Pakistan or not, if not he will go forward with the deal though it is very unlikely.

Sanctions​

4. The European Council is committed to intensify pressure on Russia and Belarus to thwart Russia’s war against Ukraine. The European Council calls on all countries to align with EU sanctions. Any attempts to circumvent sanctions or to aid Russia by other means must be stopped.

European Council conclusions on Ukraine, 30 May 2022

On 30 May, the European Council adopted conclusions on Ukraine.

www.consilium.europa.eu

Hi,

Are we aligned with EU on sanctioning Russia? This is more of a plea on ethical grounds, evident from choosing the word "call".

You should also read points 5 and 7.

5. The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.

(Is Pakistan a Member State of EU? If not, these have no bearing on us.)

7. The European Council will revert to the issue of the temporary exception for crude oil delivered by pipeline as soon as possible.

 

[muhammadhafeezmalik]

Hi,

Are we aligned with EU on sanctioning Russia? This is more of a plea on ethical grounds, evident from choosing the word "call".

You should also read points 5 and 7.

5. The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.

(Is Pakistan a Member State of EU? If not, these have no bearing on us.)

7. The European Council will revert to the issue of the temporary exception for crude oil delivered by pipeline as soon as possible.

Miftah was saying that we are evaluating sanction (imposed yesterday), if we are not affected by these sanctions we are ready to negotiate LNG/petroleum products deal. But it is highly impossible that we struck a deal with Russian Federation as even before sanctions Russians were not responding positively for our demand to purchase LNG or petroleum products.

Pakistan cannot refine Russian crude oil till 2025 as BYCO will start functioning from 2025. Pakistan tried many times for LNG deal with Russian Federation, in 2019 PTI government announced that Russia, Azerbaijan, Malaysia, Oman and Turkey are also seeking to ink an LNG deal with Pakistan on a government-to-government basis, however, the then PTI government had given priority to Qatar.

We should have a facepalm emoji option as well to use for posts like these.

Why don't you add that button?? I am also interested to use that button.

 

[farok84]

Miftah was saying that we are evaluating sanction (imposed yesterday), if we are not affected by these sanctions we are ready to negotiate LNG/petroleum products deal. But it is highly impossible that we struck a deal with Russian Federation as even before sanctions Russians were not responding positively for our demand to purchase LNG or petroleum products.

Pakistan cannot refine Russian crude oil till 2025 as BYCO will start functioning from 2025. Pakistan tried many times for LNG deal with Russian Federation, in 2019 PTI government announced that Russia, Azerbaijan, Malaysia, Oman and Turkey are also seeking to ink an LNG deal with Pakistan on a government-to-government basis, however, the then PTI government had given priority to Qatar.



Why don't you add that button??

Hi,

Why can't they refine it? Can you share details? And a source to the claim?

 

[ziaulislam]

EU cant sanction necause EU is the biggest buyer of gas

Miftah was saying that he will look into (fresh) sanctions whether these effect Pakistan or not, if not he will go forward with the deal though it is very unlikely.

Sanctions​

4. The European Council is committed to intensify pressure on Russia and Belarus to thwart Russia’s war against Ukraine. The European Council calls on all countries to align with EU sanctions. Any attempts to circumvent sanctions or to aid Russia by other means must be stopped.

European Council conclusions on Ukraine, 30 May 2022

On 30 May, the European Council adopted conclusions on Ukraine.

www.consilium.europa.eu

 

[muhammadhafeezmalik]

Hi,

Why can't they refine it? Can you share details? And a source to the claim?

My apology.
Pakistan refineries can refine Sakhalin & ESPO though we have not imported these products in past many years, the first theory I stated was spread by renown experts.

There are some other factors too, Pakistan is using UAE and KSA dollars to look fattened its foreign exchange reserves, if we would lower our dependence on Middle Eastern countries for oil we may lose this "support" from them.

 

[farok84]

My apology.
Pakistan refineries can refine Sakhalin & ESPO though we have not imported these products in past many years, the first theory I stated was spread by renown experts.

There are some other factors too, Pakistan is using UAE and KSA dollars to look fattened its foreign exchange reserves, if we would lower our dependence on Middle Eastern countries for oil we may lose this "support" from them.

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.

Hi,

But why can't our refineries, refine Urals (other than Parco)? If they can refine Arab Light, Iranian Blends, why not Russian. What is so different with Urals that it can't be refined at our refineries?

For reference, Arab Light's API varies from 31.8 to 33.4, Sulfur content from 1.77 to 2.06, Urals, API 30.68 to 31.78, Sulfur 1.35 to 1.48.

View attachment 843348

View attachment 843349


@niaz Sb has explained this at lengths in another thread.


"Before the sanctions, Russia exported about 5 mm BPD of crude second only to Saudi Arabia which exports about 6.6 mm BPD. Russian most commonly exported crude is the “ Urals”. Like all export crude oil, Urals is a blend of the heavy crude oils produced from the Urals and the Volga regions with the light sweet crude of Western Siberia. It has an API of 32 with 1.2% sulphur, hence not too different in quality to the Saudi Light of 33 API & 1.77% sulphur and Iran Light (32 to 33 API and Sulphur of 1.4%). Pakistani refineries have been using Iran Light and Arab Light thus there should be no problem running the Urals crude. I am not sure if Urals can also be used for making good quality lubricants."

Russia offered Pakistan 30% discount on oil and wheat. PM IK.

@Waterboy How many billions of dollars of goods and services do the countries you mentioned sell to Pakistan versus what they buy from Pakistan in return?

defence.pk

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.

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?

Crude Petroleum in Pakistan | The Observatory of Economic Complexity

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

oec.world

 

[farok84]

Miftah was saying that he will look into (fresh) sanctions whether these effect Pakistan or not, if not he will go forward with the deal though it is very unlikely.

Sanctions​

4. The European Council is committed to intensify pressure on Russia and Belarus to thwart Russia’s war against Ukraine. The European Council calls on all countries to align with EU sanctions. Any attempts to circumvent sanctions or to aid Russia by other means must be stopped.

European Council conclusions on Ukraine, 30 May 2022

On 30 May, the European Council adopted conclusions on Ukraine.

www.consilium.europa.eu

How Bloomberg received the announcement of these partial bans.

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