ISLAMABAD: In a major development, Pakistan has agreed to import Russian crude oil at subsidized rates on Moscow’s offer.
During the Intergovernmental Commission (IGC) meeting in Moscow, the two sides agreed to resume crude oil trade from January 2025. Pakistan will import one cargo per month under the GTG arrangement. The delegation of Pakistan was led by Federal Minister for Energy Sardar Owais Leghari in the meeting.
“Pakistan Refinery Limited (PRL) will import 12 cargoes from Russia in a year under the new agreement reached between the two countries,” a senior government official present at the meeting told The News.
Governor State Bank of Pakistan played an important role during the IGC meeting for payment mechanism. They resolved that mechanisms for smooth transactions would be made acceptable to both countries.
Both parties are keen to resolve the issue of payment mechanism through banking channels. Other issues being discussed include railway connectivity from Pakistan to Central Asian states and Russia, the delayed $3 billion Pakistan Stream Gas Pipeline (PSGP) project and ways to accelerate bilateral trade. Final agreements in this regard will be signed today (December 4), ushering in a new era of cooperation between Pakistan and Russia.
Pakistan Refinery Limited (PRL), the official said, will import Russian crude oil at subsidized rates. The profit that the refinery will earn will be used in its upgrade project apart from incentives from the government under the brownfield policy.
According to a press release issued here on Tuesday, Energy Minister Owais Laghari and Russian Transport Minister Roman Starovet reviewed the possibilities of expanding bilateral ties that would benefit not only the two countries but the entire region. Federal Energy Minister of Pakistan is visiting Moscow to co-chair the 9th session of Russia IGC.