PAK- RUS Reach Understanding On Supply Of Russian Crude Oil

State minister for energy in the Petroleum Division said that the structure for purchasing crude oil from Russia and the Pakistan Stream gas pipeline would be finalized in March.

PAK- RUS Reach Understanding On Supply Of Russian Crude Oil

 

Pakistan and Russia reached an agreement on Friday on the supply of Russian crude oil and other oil products, a major breakthrough in the country’s economic crisis.

Following the conclusion of the Pakistan-Russia Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation, the two sides reached an agreement.

Pakistan will finalise the framework for purchasing Russian crude oil in March of this year and pay for its energy imports in the currencies of friendly countries, the two countries’ energy and petroleum ministers said after a joint ministerial meeting on Friday.

During the meeting, the two parties agreed to work on a comprehensive energy cooperation plan that would serve as the foundation for future work, Sadiq said at a joint press conference with Shulginov while reading from the joint statement.

The two sides also signed an agreement on cooperation and mutual assistance in customs matters, a protocol on the exchange of documents and data on the customs value of goods, and a working agreement on the airworthiness of aeronautical products at the end of the meeting.

“Pakistan and Russia have agreed to work on a comprehensive plan for energy cooperation, which will serve as the foundation for future work,” Sadiq said, adding that the two countries also agreed to increase energy trade and expand energy infrastructure investment on strategic and favourable commercial terms.

State minister for energy in the Petroleum Division, told the media that the structure for purchasing crude oil from Russia and the Pakistan Stream gas pipeline would be finalised in March. “We will start importing crude oil, gasoline, and diesel from Russia in March,” State minister told the reporters.

“Pakistan wants to import 35% of its crude oil needs from Russia,” State minister added. In response to a question, the minister of state stated that Russia currently does not have enough liquefied natural gas (LNG) to export to Pakistan.

Shulginov stated that Pakistan would pay for its energy purchases from Russia in the currencies of friendly countries, which would begin in late March. He added that after reaching an agreement on technical specifications, the oil and gas trade transactions would be structured in a way that benefited both countries by March of this year.

According to Sadiq, an agreement was reached that the Pakistan Stream Gas Pipeline should be considered in terms of comprehensive infrastructure and economically viable projects for long-term gas infrastructure development, ensuring affordable gas supplies.

He maintained that Pakistan and Russia reaffirmed their commitment to a strong and cooperative economic relationship, emphasising how such a relationship benefits both the two countries and the region.

During the talks, the two sides discussed new areas of cooperation and agreed to expand cooperation in trade, investment, higher education, customs, communications, transport, industry, railways, agriculture science, science and technology, and information technology.

The Russian side was invited to potential projects of Pakistan’s federal and provincial governments, including in the public-private partnership (PPP) mode, according to the joint statement, and Russian businessmen were asked to investigate these possibilities.

“The two sides also discussed innovative ways of doing business, including barter, and agreed to explore the option further,” it said, adding that relevant ministries and departments from both sides would rigorously follow up to benefit from the potential for common prosperity in various sectors.

They agreed to appoint focal points to strengthen mutual cooperation and discuss connectivity and logistics issues in Central and South Asia. The two sides agreed to share information about developing and improving rail and road infrastructure in order to facilitate regional integration and Eurasian connectivity.

The Prime Minister-led coalition government pursued the option of importing oil from Russia. The procedure was carried out after the Finance Minister stated that the US had no objections to Pakistan importing the oil from Moscow.