Photo courtesy PID
State Minister for Petroleum Musadik Malik on Monday announced that Russia has agreed to provide crude oil, petrol, and diesel to Pakistan at discounted rates.
“Our visit to Russia turned out to be more productive than expected,” he told a press conference in Islamabad. “Russia has decided to provide Pakistan crude at discounted rates,” he said, adding this was the fuel that refineries used to produce diesel and petrol. “Russia will also give petrol and diesel to Pakistan at lower prices,” he said.
According to Malik, Russia currently has a shortage of liquefied natural gas (LNG) because of “international pressure,” but it had arranged a meeting with some private companies with whom the government is now negotiating for LNG supplies. “The Russian government is setting up new factories for the production of LNG and they have invited Pakistan to begin talks on long-term contracts for 2025 and 2026,” he added.
The minister said Russia was “very interested” in pipeline gas supplies to Pakistan and talks were ongoing on the completion of the Pakistan Stream pipeline, as well as another pipeline for internationally piped gas. “We requested some flexibility because Pakistan has many constraints,” he said of the existing agreements with Russia, stressing that Islamabad was still committed to all previously inked agreements.
Malik said an inter-governmental delegation from Russia would visit Pakistan mid-January next year, adding that he hoped to materialize all his announcements in a formal agreement at that time.
Additionally, said the minister, Iran had decided to donate £2 million of liquefied petroleum gas (LPG) to Pakistan. “It will reach the country within the next 10 days,” he said, noting this would help the country overcome gas shortages this winter.
Separately, Finance Minister Ishaq Dar approved the import of 450,000 tons of wheat from Russia on a government-to-government basis from Feb. 1, 2023 to March 31, 2023.