Recently there have been a massive breakthrough in Russia-Pakistan relation after Pakistan purchased and received the first shipment of Russia’s discounted oil. Russian Foreign Minister made a video saying “Russia-Pakistan relation zindabad” and thanking Pakistan for purchasing Russian oil and Wheat. This an important moment for Pakistan as there has been civil unrest due to the arrest of former PM Imran Khan. Pakistan’s Current PM Shehbaz Sharif tweeted this achievement and announced fulfilment of his promise to the nation about purchasing Russian oil.
Both the countries are celebrating this deal as this is their first ever big deal with one another. This shipment is more beneficial for Russia as they trade with Pakistan using Yuan i.e., Chinese currency. Using Yuan is advantageous for Russia as they can again use this Yuan to trade with China. Russia does not get this advantage while trading with India. However, it does not mean that Pakistan market becomes more important for Russia, India has been a huge buyer/customer for Russia since last few decades.
Russia-Pakistan relation
One may think that why Russia is trading with Pakistan, a near-to-default country? The answer is that Russia is planning for the future relationship with Pakistan. Russia knows that Pakistan has been reduced to a mere Lieutenant of China due to its loans. Therefore, Pakistan would be a vital buyer for Oil as well as wheat from Russia in the future and it is convenient to trade with Pakistan as the payment is in Chinese Yuan, which can be again used to purchase goods from China. Similarly, this friendship hand of Russia can bring many opportunities to Pakistan. According, to Russia’s Foreign Minister Russia and Pakistan would work together in the field of education, transport, security and many other fields. This shows that Russia-Pakistan relation trajectory for now is increasing smoothly.
China-Pakistan-Russia Relation
Many think tanks in USA, like Wilson-Centre predicted that China-Pakistan-Russia is an immerging relationship and would continue to grow in the future. Now, in 2023 this prediction seems to be coming into action. Pakistan is already in groups like SCO (Shanghai Cooperation Organization) and is eager to join BRICS (Brazil, Russia, India, China, South Africa), therefore, their engagement with each other is also increasing steadily. China-Pakistan-Russia relation would greatly benefit Pakistan as they are now suffering from economic crisis. This relationship can help Pakistan to overcome the crisis.
Impact on India
There would be no impact on India as this development do not hurt the country’s interest. However, if Russia, under the influence of China, decides to sell military equipment to Pakistan then it would impact India as it could threaten the national security of the country. Overall, this relationship does not affect India-Russia relation which has been constant for decades. India is and will be a huge buyer of Russian Oil and military equipment. Therefore, Russia will savour the relation with India.
FAQ:
Where is Russian oil cargo anchored in Pakistan?
Recently there have been a massive breakthrough in Russia-Pakistan relation after Pakistan purchased and received the first shipment of Russia’s discounted oil. The Russian oil cargo, pure point, was seen at the port in Karachi, Pakistan.
Will snapping crude oil from Russia stabilize oil price in Pakistan?
Recently there have been a massive breakthrough in Russia-Pakistan relation after Pakistan purchased and received the first shipment of Russia’s discounted oil. The Russian oil cargo, pure point, was seen at the port in Karachi, Pakistan. Pakistan has bought the oil in a discounted rate which will help Pakistan to decrease the oil price in the nation in future. Since Pakistan lacks refining ability Russia has sent the blended oil which would have increased the price but still its lower than the oil price from the Gulf countries.
Why does Pakistan import more refined oil than low-cost crude oil?
Pakistan imports more refined oil rather than low-cost crude oil because they lack the refining ability. Pakistan do not have enough refineries to refine the oil for the whole nation. This makes them import oil at a higher rate then countries like India, which have the best refineries in the world.