ISLAMABAD (TDI): Pakistan has principally agreed with Moscow to restart import of Russian crude oil at a discounted rate, according to officials close to this deal.
The consensus was reached during the ongoing Inter-Governmental Commission (IGC) session held in Moscow, where both nations agreed to restart crude oil trade starting with new calendar year in January 2025.
Under this Government-to-Government (G2G) deal, Pakistan will get one cargo of crude oil each month. The talks were headed by Federal Minister for Energy Sardar Awais Leghari, who is leading Pakistan’s delegation at the IGC meeting.
“Pakistan Refinery Limited (PRL) would buy 12 cargoes from Russia in at least one year under the new arrangement reached between the two nations,” a senior government official, who was part of the meeting divulged this information.
Jameel Ahmad, Governor State Bank of Pakistan (SBP), played a key role during the IGC meeting while finalizing the payment framework. He finalized a mechanism that would is also acceptable to both the nations for smooth flow of payments.
Both sides are optimistic about the deal in resolving the actual issue of payment framework through official banking channels.
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The other issues, discussed were including the railways connectivity with Central Asian States and Russia from Pakistan. Others were the delayed project of $3 billion Pakistan Stream Gas Pipeline (PSGP) and the way forward to accelerate bilateral trade, are under discussion.
The final agreements in this deal would be signed today (December 4, 2024), commissioning a new era of trade between Pakistan and Russia.
Pakistan Refinery Limited (PRL), the official further stated, would get Russian crude at a discounted rate.
The profit earned for the refinery would be used in its up-gradation project. These benefits are given by the government under the Brownfield Policy.
Also Read: Pakistan Seeks Russian Investment in Infrastructure Projects
According to a press release issued here on Tuesday, Minister for Energy Awais Leghari and Russian Minister for Transport Roman Starovoyt reviewed the prospects of extending the mutual connectivity which would not only give benefit to the two nations but the entire region.
Awais Leghari the federal minister for energy is on an official visit of Moscow to co-chair the 9th session of Pakistan-Russia IGC.
