China backs Pakistan paying Russia in RMB

China on Tuesday defended Pakistan’s decision to make international payment for its first government-to-government import of discounted Russian crude oil in the Chinese currency.

The statement came after Minister of State for Petroleum Musadik Malik, while speaking to Reuters by telephone, did not disclose the commercial details of the deal, including pricing or the discount that Pakistan received, but said, the “payment (was) made in RMB)”. The Renminbi (RMB) is the official name of China’s currency.

Pakistan's Refinery Limited (PRL) will initially refine the Russian crude, the minister said. He had earlier referred to the purchase of the shipment as a trial run to judge financial and technical feasibility, but said that all the tests and trials had been done, which found that the Russian crude was fit to refine and market locally.