A new price cap policy announced by the G-7 countries will ensure that Russian oil stays on the market but at bargain rates, benefitting the surrounding regions as a result. All those who take advantage of this policy are promised to be exempt from sanctions so long as the price cap is adhered to. This has led to India becoming the largest importer of Russian oil in the last month, along with China. If anything, these developments have presented a new opportunity for Pakistan which could be advantageous should we opt to pursue it.

As of right now, 22 percent of all Indian crude imports are being provided by Russia at discounted rates. The G-7 countries have decided on implementing a price cap that will cut the country’s oil revenues all the while keeping the commodity on the market. Once the European Union halts its oil imports from Russia, it will scramble to attract buyers who will then be in a leveraging position, resulting in low prices. And so long as the price cap is adhered to, no country who imports Russian oil will be subjected to sanctions or denied insurance, maritime services or access to financial systems.

Previously, Pakistan had made attempts to import oil from Russia but all of them were intercepted by economic policies of the US that were intended to exclude Russia from the global market. However, without this threat looming over our heads, we can take advantage of this new policy by the G-7 and import oil at cheaper rates. This would provide some much needed relief to the domestic market and the people of the country since rising oil prices globally have resulted in a host of new problems internally.

It is vital that our authorities seize the moment and pursue deals that will ensure the uninterrupted and cheap supply of oil. We should follow the example set forth by neighboring countries like India and China who are benefitting immensely from this.