Pakistani banks ‘reluctant’ to open LCs for Russian wheat amid possible fine by U.S.

Pakistani banks have refused to open letters of credit (LCs) for wheat import from Russia, fearing the United States may impose a fine on them amid rivalry between Russia and the U.S. on the Ukrainian war.

According to the Express Tribune’s report, two Pakistani banks have already been slapped with penalties in the US due to regulatory violations.

The banks are wary of opening LCs for engaging in trade with Kremlin.

As per reports, Pakistani banks have categorically refused to open LCs without making queries about wheat import from Russia.

Pertinent to note that that Ukraine war has disrupted global grain chain and additionally, Pakistan requires supplies of the staple commodity as the recent massive floods have damaged its crops.

Russia to provide oil to Pakistan at discounted prices

Minister of State Musadik Malik on Monday announced that Russia has agreed to export oil to Pakistan at discounted prices.

He made this announcement while addressing a press conference in Islamabad the other day.

Musadik Malik said that Russia will also provide diesel, petrol and talks are underway for L.N.G deal also.

ECC Approves Russia wheat offer

 

The Economic Coordination Committee (ECC) on Monday approved the offer of Russian company Prodintorg for supply of 450,000 tons of wheat at $372 per ton on a government-to-government (G2G) basis at Gwadar Port during shipment period from February 1 to March 31, 2023.