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Pakistan will pay for energy purchases from Russia, scheduled to start in late March, in the currencies of “friendly countries,” Moscow’s Energy Minister Nikolay Shulginov told journalists on Friday.
Addressing a press briefing after the eighth session of the Pakistan-Russia Intergovernmental Commission in Islamabad—which he co-chaired with Economic Affairs Minister Ayaz Sadiq—he said it had been agreed that Pakistan would start importing crude oil from Russia in late March. A subsequent joint statement issued to media said both countries had agreed the “oil and gas trade transaction will be structured in a way it has [a] mutual economic benefit for both countries.”
According to the statement, Islamabad and Moscow also signed an agreement on custom matters; a protocol on the exchange of documents and data on the customs value of goods transported between the countries; and a working agreement on aeronautical products. “Both sides have agreed to work on a ‘Comprehensive Plan for Energy Cooperation,’ which would form the foundation for future work and is to be finalized in 2023,” it said.
On the Pak-Stream Gas Pipeline Project (PSGPP), the statement said both sides had agreed to consider it in terms of “comprehensive infrastructure, which is economically viable for sustainable gas infrastructure development ensuring affordable gas supplies.” Additionally, read the statement, both countries agreed to explore “innovative” ways of conducting business, including through barter. They also agreed to share information on developing and improving rail and road infrastructure by nominating focal persons to discuss connectivity and logistics for Central and South Asia.
Earlier, the Russian delegation met Prime Minister Shehbaz Sharif in Lahore on Wednesday and exchanged views “on supplying oil and gas from Russia to Pakistan on a long-term basis.” According to a statement from the Prime Minister’s Office, the Russian energy minister also conveyed a “special message” from President Vladimir Putin to the premier, saying Russia considers Pakistan an “important” partner in South Asia and the Islamic world and wishes to deepen the bilateral relationship.
The statement also highlighted the importance Pakistan attaches to its relations with Russia and recalled that the two leaders had taken “important decisions” on further ties during a meeting in Samarkand, Uzbekistan last year. “Matters related to gas pipelines were also reviewed,” read the statement on the 1,100km pipeline project connecting Karachi to Punjab.