Pakistan just became the latest country to snap up cheap Russian oil
- Barrels of Russian oil trade for $15 less than other benchmarks as the Ukraine war weighs on prices.
- Pakistan just placed its first order for the cheaper crude, its petroleum minister told Reuters.
Pakistan has placed its first order for Russian oil since the war with Ukraine began, becoming the latest country to snap up Moscow's crude at a discount.
Petroleum minister Musadik Malik said in an interview with Reuters that Pakistan has placed its maiden order for the cheaper oil, and will eventually import around 100,000 barrels a day if the transaction goes smoothly.
"Our orders are in, we have placed that already," he told the publication, adding that its deal with Russia covers crude but not refined products like gasoline and diesel.
Russian oil has been available at a steep discount to other benchmarks since Western countries sanctioned the Kremlin after Russia invaded Ukraine in February 2022. The sanctions have targeted the country's key industries and some of its wealthiest and most influential citizens.
Urals crude traded at just under $66 a barrel at last check, making Russian oil around $10 cheaper than a barrel of West Texas Intermediate and $15 a barrel cheaper than Brent crude.
Like Pakistan, India and China have both also seized the opportunity to import Moscow's crude at a discount, helping to prop up its revenues despite the US and the European Union's sanctions.
Western countries agreed to cap Russian crude at $60 a barrel late last year but India and China pay prices above that level, according to Reuters, which cited traders and its own calculations.