VASTLY divergent views about the possibility of buying Russian petrochemicals from Foreign Minister Bilawal Bhutto-Zardari and Minister of State for Petroleum Musadik Malik has added to the confusion prevailing over the issue. This is perhaps another reflection of the dissonance that afflicts the PDM government. While speaking to American public broadcaster PBS, the foreign minister said that Pakistan is “not pursuing or receiving” Russian oil, while adding that energy from Moscow “will take a long time to develop”. However, Mr Bhutto-Zardari’s statement had raised eyebrows as Mr Malik had only recently returned from Moscow, with the promise that Russian hydrocarbons bound for Pakistan were in the pipeline. In an apparent attempt at damage control, Mr Malik told the media on Friday that his cabinet colleague’s stance was based on ‘confusion’, and that the Russian energy minister was due in Islamabad next month to seal the deal for discounted energy supplies, going as far as to say that Russian hydrocarbons would be flowing within four to five months. Moreover, while some have observed that Pakistani refineries are unable to process Russian crude varieties, Mr Malik said we very much have the capacity to refine Moscow’s petrochemicals.
The government needs to explain which position is correct: that of the foreign minister or the petroleum minister? Once this issue is settled, there is the equally important question of the practicality of importing Russian crude. The G7 grouping has implemented a price cap of $60 per barrel for Russian crude, though Mr Malik says we will be able to purchase Moscow’s petrochemicals at deep discounts. Finance Minister Ishaq Dar has also said the US “cannot stop” Pakistan from purchasing Russian oil. Considering the geopolitics involved, buying Russian oil will not be easy. However, if Pakistan is assured of steady supplies at attractive rates by Moscow, and the US and its Western allies confirm that we will not face punitive actions for buying Russian oil, then Pakistan should pursue the option without delay.
Published in Dawn, December 18th, 2022
