Finance Minister Miftah Ismail said on Tuesday that Pakistan would be open to buying oil from Russia at cheaper rates if it was offered and provided that there were no sanctions over such a deal.
In an interview with CNN’s Becky Anderson, the minister was questioned about the possibility of Pakistan buying cheap Russian oil just as neighboring India was doing, Ismail said that he would “surely consider” if there were no sanctions on Pakistan to buy Russian oil.
A day after the EU imposed a 90% ban on Russian oil, Pakistan's Finance Minister @MiftahIsmail tells me if Russia were to offer Pakistan oil at a cheaper rate without incurring sanctions, he would consider it. pic.twitter.com/zlVY3qKdEs
— Becky Anderson (@BeckyCNN) May 31, 2022
The minister, however, reiterated his stance that he did not think banks in Pakistan could make any arrangement to buy oil from Russia. He also added that no discounted deal has been offered to Pakistan by Moscow.
“The previous government talked about buying oil from Russia but I think Russia is under sanctions and they haven’t responded to the letter written by the previous government,” Ismail told Anderson.
The minister acknowledged that the government has asked both Ukraine and Russia with regards to importing wheat and added that the government would be happy to buy wheat from whichever country was ready to sell to Pakistan.
Former Energy Minister Hammad Azhar also criticized Ismail for his stance on the import of oil from Russia. In a tweet, Azhar expressed surprise that even after 45 days in power, the government still doesn’t know that there are no sanctions that prevent importing oil from Russia.
“Miftah sahib says that our banks cannot open L/C’s in favor of Russian products but then he goes on to announce buying Russian Wheat. Then he says that the govt will buy Russian oil if no sanctions are in place. 45 days and he still doesn’t know that there are no sanctions,” Azhar wrote.
Miftah sahib says that our banks cannot open L/C's in favour of Russian products but then he goes on to announce buying Russian Wheat. Then he says that the govt will buy Russian oil if no sanctions are in place. 45 days and he still doesn't know that there are no sanctions.
— Hammad Azhar (@Hammad_Azhar) May 31, 2022
In another tweet, Azhar claimed that Russia started offering discounted oil in mid-March, and Pakistan immediately started talks on the subject. Adding that on March 29, Pakistan’s Ambassador in Moscow told him that Russia wanted a letter in writing from Pakistan which was delivered the next day on March 30. He questioned the finance minister why no progress has been made in this regard despite the passage of almost two months.
India’s imports of Russian crude
It is pertinent to mention here that in recent months, India has significantly increased its crude imports from Russia. Russian crude flows to India in May are expected to be 9 times higher than the monthly average during 2021, according to estimates from Refinitiv.
In a recent report, Reuters said that the current U.S. sanctions against Russia do not prevent other countries from buying Russian oil. But Biden administration officials have considered so-called secondary sanctions that could restrict those purchases.
Just because India buys, we need not follow. India buys billions of dollars worth military hardware from Russia and most of them are being upgraded and therefore they are obligated to buy from Russia. It would be idiotic for us to buy from Russia and upset our largest trading partner with whom we have a surplus at this stage of our economy. It is not independent foreign policy but obligations and compulsions.
The question is even if we want to import Russian oil then what is so concerning for our largest trading partner. We can establish trading relations with any country of our choice.
With all due respect sir, this is independent foreign policy, not obligations and compulsions.
Don’t be naive. There is something called as tariffs. West always deploys this as a weapon. Will our country be able to trade with Yemen without rubbing the Arabs the wrong way. We have tied our trade with geopolitics since ages. Now, we wake up and say independent foreign policy is like a kindergarten student suddenly realising he should be in matriculation. The point is we are teenager who has failed kindergarten infinite times and are realising our folly.