ISLAMABAD (TDI): Pakistan and Russia have agreed to revive imports of Russian crude oil at a lower than market rate, according to officials close to this deal.
The consensus was arrived at during the ongoing Inter-Governmental Commission (IGC) parleys held in Moscow, where both sides agreed to begin the crude oil trade again in January 2025.
Under this Government-to-Government (G2G) transaction, Pakistan will order one cargo of crude oil in every single month. In Moscow, the talks were co-headed by Federal Minister for Energy Sardar Awais Leghari, who is leading Pakistan’s side at the IGC meeting.
PRL – Pakistan Refinery Limited would purchase 12 cargoes from Russia in at least one annum through the new deal reached between the two sides, a senior Pakistan-side government official, who was part of the meeting conveyed this information.
In finalizing the deal, Jameel Ahmad, Governor State Bank of Pakistan (SBP), played a critical role during the IGC meeting where the payment modes were mutually agreed. He set a transaction mechanism that is acceptable for both sides in order to get smooth flow of payments.
Both sides are positive about the deal in finalizing the real issue of payment framework through official banking channels.
Rad More: Pak Russia Connectivity Development
Several other issues discussed in the talks were the railways connectivity with Central Asian States and Russia from Pakistan. Other ponit was the delayed project of $3 billion Pakistan Stream Gas Pipeline (PSGP) and the future of accelerate bilateral trade, are the key points to discuss.
The final agreements in this deal is likely to be signed today (December 4, 2024), restarting a new era of commerce between Pakistan and Russia.
Pakistan Refinery Limited (PRL), the official further divulged, would get Russian crude at a lower than market tariff.
The revenue earned for the refinery (PRL) would be spent in its up-gradation project of the PRL.
Also Read: Pakistan Russia Explore Extending Bilateral COnnectivity
According to a press release issued on Tuesday, Minister for Energy Awais Leghari and Russian Minister for Transport Roman Starovoyt evaluate the prospects of enhancing the mutual connectivity which would be beneficial for not only the two sides but also the entire zone.
The federal minister for energy, Awais Ahmad Khan Leghari, is on an official visit of Moscow where he is co-chairing the 9th session of Pakistan-Russia IGC.