In separate developments, the Russian Federation and the US promised full support to Islamabad on Thursday, saying Pakistan was an important partner and they wanted strong bilateral relations with it in various sectors.
A delegation, led by Russian Energy Minister Nikolay Shulginov, called on Prime Minister Shehbaz Sharif in Lahore and discussed cooperation in various fields to strengthen the Pak-Russia relations.
Welcoming the delegation, the prime minister highlighted the importance Pakistan attached to its relations with the Russian Federation. He recalled his meeting with President Vladimir Putin in Samarkand in September 2022 and said that the meeting had reached important decisions to strengthen Pakistan-Russia relations. He also noted with satisfaction the keen desire on both the sides to upgrade the bilateral cooperation in trade, investment and economic matters.
The Russian minister reciprocated PM’s sentiments and delivered a special message of Russian President Vladimir Putin to his host. In his message, President Putin, referring to Pakistan as Russia’s important partner in South Asia and the Islamic world, reiterated his strong interest to deepen the bilateral relationship.
Both sides agreed on the importance of energy sector for development of bilateral economic and trade relations. In this regard, views were exchanged on supplying oil and gas from Russia to Pakistan on a long-term basis. Matters related to gas pipelines were also reviewed.
The PM provided guidance for the work of 8th Round of Pakistan-Russia Inter-Governmental Commission meeting, scheduled to be held in Islamabad on Jan 20, 2023. Federal ministers Sardar Ayaz Sadiq, Syed Naveed Qamar, Minister for State for Petroleum Musadik Malik and Special Assistant to the Prime Minister Tariq Fatimi were also present.
Separately, in the federal capital, on the second day of Pak-Russia talks, Moscow communicated to Islamabad that it would announce the price of Russian crude for Islamabad once an MoU or protocol was signed for energy trade (crude oil, POL products and LNG), which would show the seriousness of Government of Pakistan towards the energy trade.
And to this effect, both sides are working to finalise an MoU and protocol that may be signed at the end of three-day talks on Friday (today).
“The experts from Russia also asked Pakistan counterparts not to mention the price cap of $60 per barrel imposed on Russian oil by G7 countries while discussing the crude import,” the officials involved in the talks told The News.
Currently, the Russian oil price in the international market hovers between $70-75 per barrel whereas Brent is priced at $81 per barrel. However, Pakistan hopes that it will get crude oil below $60 per barrel from Russia under the GtG mode. Nonetheless, sources said that the issue of discount as desired by Pakistan on crude oil would be decided by Russian President Putin if the Pakistan government’s top man contacts him.
Pakistan is interested in buying around 100,000 barrels per day of Russian crude oil and if the country’s refineries get synchronised well with the blended Russian crude oil, then the quantity of crude from Russia will be increased accordingly. As far as the $3 billion Pakistan Stream Gas Pipeline (PSGP) is concerned, Pakistan is of the view that it will erect the pipeline but it is linked with the supply of more LNG and infrastructure at the port. Russia wants to initiate the project and move forward in finalising the shareholding under the existing IGA. But now Pakistan wants it to execute the project on a BOOT (build, own, operate and transfer) basis.
