Pakistan becomes key sponsor of Russian aggression in Ukraine with large oil order.

Photo by Natalya Letunova on Unsplash

Pakistan has placed its first order for discounted Russian crude oil under a deal struck between Islamabad and Moscow, the country's petroleum minister said, with one cargo to dock at the port of Karachi in May, reports Reuters.

Pakistan's purchase gives Russia a new outlet, adding to Moscow's growing sales to India and China, as it redirects oil from Western markets because of the Ukraine conflict.

As a long-standing Western ally and the arch-rival of neighbouring India, which historically is closer to Moscow, analysts say the crude deal would have been difficult for Pakistan to accept, but its financing needs are great.

As part of sanctions on Moscow, Western nations have imposed a $60 a barrel price cap on purchases of Russian oil to try to limit Russia's revenues for fighting in Ukraine.  India and China, however, have paid prices above the cap, according to traders and Reuters calculations.

Under the deal, Pakistan will buy only crude, not refined fuels, Minister Musadik Malik told Reuters late on Wednesday. Imports are expected to reach 100,000 barrels per day (bpd) if the first transaction goes through smoothly, he said. "Our orders are in, we have placed that already," he said. 

India, Pakistan and China are now the lead purchasers of Russian oil along with Turkey, Saudi Arabia, Singapore and UAE, thus becoming key sponsors of the Russian military in the war in Ukraine, following the illegal Russian invasion over 420 days ago. 

Reporting by Asif Shahzad