‘Progress’ in talks with Russia on procurement of oil, gas: sources

ISLAMABAD: Pakistan and Russia have made ‘significant progress’ in talks for procurement of oil and gas as Moscow’s Energy Minister is likely to visit Islamabad in January 2023, ARY News reported on Thursday, citing sources.

According to details, a virtual meeting was held between officials of Energy Ministries of Pakistan and Russia. Matters related to procurement of oil and gas were discussed during the meeting.

Informed sources told ARY News that the officials also discussed matters related to shipping and insurance to procure Russian oil. Discussions were also held on financial arrangements for oil import, sources added.

Meanwhile, sources claimed that both countries made ‘significant progress’ in talks and Russian Energy Minister would undertake a two-day official visit to Pakistan on January 19. Issues related to procurement of oil will be discussed during the visit, they added.

Earlier in December, Russian Deputy Prime Minister Alexander Novak said that Moscow was ready to resume gas supplies to Europe through the Yamal-Europe Pipeline and it can also send supplies to Pakistan and Afghanistan in the long term.

“The European market remains relevant, as the gas shortage persists, and we have every opportunity to resume supplies,” TASS cited Novak as saying in remarks published by the agency on Sunday.

“For example, the Yamal-Europe Pipeline, which was stopped for political reasons, remains unused.”

Novak also said that in the long-term, Russia can send its natural gas to the markets of Afghanistan and Pakistan, either using the infrastructure of Central Asia, or in a swap from the territory of Iran.

It is pertinent to mention here that Minister of State for Petroleum Musadik Malik had asserted that Russia will sell crude oil to Pakistan at a discounted price.

“We are taking talks [with Russia on crude oil] forward,” the State for Petroleum Musadik Malik continued, adding that Russia had eight different types of crude oil of which two could be used by refineries in Pakistan.

He went on to say that Pakistan was also working on a framework of an agreement with Azerbaijan regarding LNG cargo.