Pakistan to Begin Talks With Russia on Importing Cheap Oil and LNG
Pakistan to Begin Talks With Russia on Importing Cheap Oil and LNG Pakistan, as well as Russia, are expected to begin discussions on the oil as well as Liquified Natural Gas (LNG) before the end of this week. Two members of a Pakistani delegation, consisting of two members, Dr. sadik Malik, Minister of State (Petroleum Division) as well as Capt (R) Muhammad Mahmood, Additional Secretary In-Charge (Petroleum Division) is scheduled to visit Moscow between November 29 and 30 in order to negotiate a deal made on the import of discounted fuel. Russian oil is less expensive than oil prices in the world and a number of countries in the region are either importing oil from Russia or are in the process of implementing the possibility of doing so. The previous administration had initiated the process but was unable to move forward. This time, the government, after receiving the approval of bilateral partners in the West may soon be a member of this.
In the meantime, talks concerning Russian gas and oil started shortly after the then prime minister Shehbaz Sharif held talks with Russian president Vladimir Putin on the sidelines of the SCO summit in Samarkand in September. In October, Secretary of State Musadik Malik informed the Russian Energy Minister of Pakistan’s keenness to draw on Moscow’s energy reserves.
The Pakistani Foreign Ministry also notified the government that the coalition of those from the US, G7, EU, and Australia was in agreement to complete the Russian oil cap. This could be advantageous to Russian producers of oil. In spite of the criticisms from Western Allies, Pakistan may benefit greatly from this change also.
In a forward response to Pakistan’s request for clarification, Russia’s attitude in this regard is seen as positive in light of the limited market for LNG and its Russian caps on the oil market, and Pakistan’s increasing energy crunch. It is worth noting that as of now, Pakistan has no long-term LNG supplier, and the spare supplies in the market are decreasing rapidly due to the increasing consumption from
Europe. With that in mind, the agreement could aid to help the South Asian nation save billions of dollars if energy-related projects together with Russia are put into place. Buying petroleum goods from Moscow will ease pressure on the country’s foreign reserves.