Petroleum Minister Musadik Malik, speaking by telephone on Monday, did not disclose the commercial details of the deal, including pricing or the discount that Pakistan received, but said, the “payment [was] made in RMB”.

He said the purchase, Pakistan’s first government-to-government deal with Russia, consisted of 100,000 tonnes, of which 45,000 tonnes had docked at Karachi port and the rest was on its way. Pakistan made the purchase back in April.

About its grade, he said, it is Urals, adding this is one of the lighter crudes available.

Pakistan’s purchase gives Moscow a new outlet to add to growing sales to India and China, as it redirects oil from Western markets because of the Ukraine conflict.Despite being a long-standing Western ally and the arch-rival of neighbouring India, which historically is closer to Moscow, analysts say the crude deal also presents a new avenue for Pakistan at a time when its financing needs are great.

Islamabad earlier this month also outlined a process to open barter trade with Russia, Afghanistan and Iran, another sign of the South Asian economy seeking avenues to buy and sell commodities without trading in dollars, which analysts say could be a shift from West to East.

Pakistan’s Refinery Limited will initially refine the Russian crude, the minister said. He had earlier referred to the purchase of the shipment as a trial run to judge financial and technical feasibility, but said on Monday that all the tests and trials had been done, which found that the Russian crude was fit to refine and market locally.

He played down concerns around the financial viability and the ability of local refineries to process Russian crude given Pakistan’s historical importation of Middle Eastern petroleum products.

“We’ve run iterations of various product mixes, and in no scenario will the refining of this crude make a loss,” Malik said, adding: “We are very sure it will be commercially viable.”

It will be blended with around 60-70 per cent Arabian light crude for refining, he said, adding, “No adjustments [were] needed at the refinery to refine the Russian crude.”

Malik wouldn’t say how much difference the crude will make to prices at the pump in the local market, but said “it will surely make a difference”.

Energy imports make up most of Pakistan’s external payments. Islamabad imported 154,000 barrels per day of oil in 2022, around the same as the previous year, data from analytics firm Kpler showed.

“We’re looking to target one-third of our total oil imports at the Russian crude,” the minister said.

The crude was predominantly supplied by the world’s top exporter Saudi Arabia followed by the United Arab Emirates.

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