In a strategic move, the first shipment of Russian oil arrived in Karachi, after undergoing refining at an Indian refinery in Gujarat. To address sensitivities, the oil was transported via the United Arab Emirates, keeping in mind Islamabad’s concerns.
Moscow’s approach serves two purposes. Firstly, it safeguards India’s relationship by avoiding any concerns over the oil deal with Pakistan. Secondly, it strengthens Russia’s negotiating position with the IMF by offering discounted oil to Pakistan.
The discounted source of oil to Pakistan enables the country to negotiate with the IMF from a stronger standpoint. The negotiations revolve around the potential removal of subsidies on pump prices, a measure that could lead to increased fuel costs. The Pakistani government aims to avoid such cost increases as it could result in unpopularity among the population.
By utilizing this oil deal and facilitating Pakistan with discounted oil, Russia supports Pakistan’s efforts to navigate the negotiations with the IMF and potentially retain subsidies on pump prices.
As per reports, Russia pursued a dual objective through this strategic move. Firstly, it aimed to maintain positive relations with India by ensuring that the discounted oil deal with Pakistan did not create any discontent.
Secondly, Russia intended to leverage this arrangement in negotiations with the International Monetary Fund (IMF) regarding the removal of subsidies from pump prices. The avoidance of subsidy removal would prevent a potential increase in petrol and diesel prices, which could adversely impact the popularity of the current government.
Source : Myind
