Russia has agreed to begin exporting crude oil to Pakistan in late March, according to Minister of State for Petroleum Musadik Malik.
The understanding was reached at the 8th session of the Pakistan-Russia Intergovernmental Commission in Islamabad. The session was co-chaired by Minister for Economic Affairs Sardar Ayaz Sadiq and the Russian Energy Minister Nikolay Shulginov.
Minister of State for Petroleum, Musadik Malik disclosed that Pakistan plans to import 35% of its total crude oil requirement from Russia.
The state minister also noted that Russia currently does not have liquefied natural gas (LNG) available for export to Pakistan.
The state minister for petroleum said that Pakistan had sent officials to Russia last year, and as a result, Russia had agreed to sell crude oil at a discounted rate.
Russia’s Energy Minister Nikolay Shulginov, who was visiting Pakistan, stated that Pakistan will pay for the energy purchases in currencies of friendly countries. This is a significant development as Pakistan has not traditionally been a major importer of Russian oil and gas.
The officials from both countries agreed to strengthen energy cooperation, enhance energy trade and broaden energy infrastructure investment based on strategic and favorable commercial terms.
They also agreed that after consensus on the technical specifications is achieved, the oil and gas trade transaction will be structured in a way that has a mutual economic benefit for both countries.