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Russian delegation reaching Islamabad on tuesday to negotiate oil/gas deal with pakistan

ISLAMABAD:  A Russian delegation, comprising government officials, are reaching Islamabad on Tuesday (Jan 17) to negotiate oil and gas supply to Pakistan.

The 80-member delegation will stay in Pakistan for three days to discuss Russia-Pakistan oil and gas cooperation under the forum of the Inter-Governmental Commission (IGC).

Federal Minister for Economic Affairs Sardar Ayaz Sadiq will head the Pakistani side in the bilateral talks.

According to sources, Pakistan and Russia will have to first negotiate the IGA (inter-governmental agreement) for the supply of oil, natural gas and LNG. Both the sides will also further negotiate the Pakistan Stream Gas Pipeline Project (PSGP).

On Feb 24, then prime minister Imran Khan visited Moscow and the draft of the shareholding and facilitation agreement for PSGP was not okayed at that time.

Right now, the G7 countries have slapped a price cap of $60 per barrel on seaborn Russian crude oil. In reaction, Moscow has banned oil sales to countries that join a Western price cap against Russia.

In Dec 2022, Minister of State for Petroleum Division Musadik Malik said Russia was ready to supply crude oil to Pakistan at discounted rates.

“Our visit to Russia turned out to be more productive than expected,” Malik said. He added that Russia did not have LNG. “Talks with Russia private firms are underway for the import of LNG, while we have also engaged Russia’s state LNG producers,” Malik said.

Malik claimed a significant progress in talks with Russia over the pipeline projects.

Sources said that Pakistan demanded 30-40% discount on Russian crude oil during talks in Moscow. However, Russians refused to supply oil to Pakistan saying they have committed all volumes.

Pakistan and Russia will hold talks on supply of oil and gas, but supply may not materialize in the ongoing winter as both sides are yet to sign final agreement, said sources.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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