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Russia and Pakistan Sign Big Energy Deal

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A worker drains water from a gas filter at the Egas processing plant in Gujar Khan, Pakistan. Photo/REUTERS/Caren Firouz

ISLAMABADRussia and Pakistan reached a “conceptual” agreement on the supply of Russian oil and petroleum products to Pakistan.

The news was announced by Deputy Minister of Energy of Russia Sergey Mochalnikov at a meeting of the intergovernmental commission in the capital of Pakistan, Friday (20/1/2023).

Earlier in December, Pakistan’s Oil Minister, Musaddiq Malik, visited Moscow to negotiate energy supplies to Islamabad and announced Russia would provide the country with oil, gasoline and diesel at reduced rates.

He did not specify a price but noted the talks were “more productive than expected.”

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During the meeting in Islamabad, the two sides also discussed “remaining questions” about the construction of the Pakistan Stream gas pipeline and prospects for wider cooperation in energy and power engineering.

Mochalnikov said Russia presented the concept of future gas supply to Pakistan.

He added, “We have to evaluate Pakistan Stream’s position on this concept as soon as possible.”

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The day before, Russia’s Energy Minister Nikolay Shulginov said Moscow was “ready to sign the necessary corporate documents” to begin construction of the pipeline.

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