Russian oil option

Published October 9, 2022

IN modern geopolitics, energy — specifically its supply, pricing and availability — can be and is weaponised by states and blocs to secure leverage. The Western decision to sanction Russian oil and gas after Moscow’s invasion of Ukraine is a case in point.

That is why states that are not major energy producers, like Pakistan, need to craft foolproof energy security policies that can shield them from major price shocks and supply disruptions if the world’s current geopolitical tussles mutate into uglier confrontations.

In this regard, the American offer to relax strictures on low- and middle-income countries that seek to import Russian energy is welcome. Talking to this paper recently, a State Department official said the waiver was being considered to keep Russian oil on the market in order to keep prices stable.

The fact is that Russian oil is available at steep discounts compared to the benchmark Brent crude. That is why India and China — one a strategic partner of the West, the other a major adversary — have been snapping up Russian oil in large volumes since the Ukraine war started earlier this year, ignoring Western calls to shun Russian petroleum products.

Read: The truth about Pakistan’s Russian oil deal prospects

Pakistan has not been able to cash in on this bonanza, though it could benefit from importing cheaper Russian crude, if technical and financial obstacles were cleared.

Moreover, when Prime Minister Shehbaz Sharif and President Vladimir Putin met at the SCO summit in Samarkand last month, the Russian leader offered to reactivate the Pakistan Stream gas pipeline.

Considering the energy crunch Pakistan faces, as well as the country’s precarious financial situation, where it can ill afford to pay high energy prices, the Russian option should be seriously explored, especially since our American friends have now declared that they have no problem with developing states buying Moscow’s hydrocarbons. In fact, taking advantage of the situation, Pakistan must also communicate to its Western partners that it should be free to purchase Iranian gas and oil to meet its energy demands.

Published in Dawn, October 9th, 2022

Opinion

Editorial

‘Source of terror’
29 Mar, 2024

‘Source of terror’

ALTHOUGH dealing with the presence of terrorist groups in Afghanistan is a major political, security and strategic...
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...