Pakistan will hold three days of bilateral talks with Russia starting Tuesday (today) on long-term oil and liquefied natural gas (LNG) trade deals, as well as on construction of the $3 billion Pakistan Stream Gas Pipeline (PSGP) project, according to official sources at the petroleum ministry.
The delegation, comprising 80 members, will conduct negotiations with Russian counterparts under the auspices of the Inter-Governmental Commission (IGC), sources said. Federal minister for economic affairs Sardar Ayaz Sadiq will head the Pakistani delegation.
For Pakistan to import of Russian oil and LNG on government-to-government basis, both countries must first negotiate an inter-governmental agreement (IGA). An IGA has been finalised and signed in the case of the PSGP, which was earlier called the North-South Gas Pipeline (NSGP) project.
The IGC agenda focuses on bilateral cooperation in areas of trade and investment, finance, agriculture, energy, customs, industry, education, science and technology, information and communication technologies, communication, roads and postal service, and railways.
During former prime minister Imran Khan’s visit to Moscow on 24 February 2022, negotiations on the draft of the shareholding and facilitation agreement for PSGP were initiated, and both sides had agreed in principle to sign the PSGP deal. However, the signing could not transpire because of a disagreement by experts from both sides on certain clauses of the shareholding agreement.
It must be noted that G7 countries have imposed a 'price cap' of $60 per barrel on Russian crude oil, and imposed an oil transportation ban on Russian ships. The G7 introduced this $60 per barrel 'price cap' on Russian crude starting 5 December 2022, in addition to the EU's embargo on importing Russian-origin crude oil by sea.
It remains to be seen how Pakistan will successfully navigate its growing relationship with Russia to successfully import Russian energy resources without incurring financial sanctions or other negative repercussions from Western countries, who are allied with Ukraine in the ongoing Russia-Ukraine conflict.
The delegation, comprising 80 members, will conduct negotiations with Russian counterparts under the auspices of the Inter-Governmental Commission (IGC), sources said. Federal minister for economic affairs Sardar Ayaz Sadiq will head the Pakistani delegation.
For Pakistan to import of Russian oil and LNG on government-to-government basis, both countries must first negotiate an inter-governmental agreement (IGA). An IGA has been finalised and signed in the case of the PSGP, which was earlier called the North-South Gas Pipeline (NSGP) project.
Well-placed sources said that Pakistan and Russia may also announce the name of companies from both countries who would further negotiate the commercial side of the bilateral agreements
The IGC agenda focuses on bilateral cooperation in areas of trade and investment, finance, agriculture, energy, customs, industry, education, science and technology, information and communication technologies, communication, roads and postal service, and railways.
During former prime minister Imran Khan’s visit to Moscow on 24 February 2022, negotiations on the draft of the shareholding and facilitation agreement for PSGP were initiated, and both sides had agreed in principle to sign the PSGP deal. However, the signing could not transpire because of a disagreement by experts from both sides on certain clauses of the shareholding agreement.
It must be noted that G7 countries have imposed a 'price cap' of $60 per barrel on Russian crude oil, and imposed an oil transportation ban on Russian ships. The G7 introduced this $60 per barrel 'price cap' on Russian crude starting 5 December 2022, in addition to the EU's embargo on importing Russian-origin crude oil by sea.
It remains to be seen how Pakistan will successfully navigate its growing relationship with Russia to successfully import Russian energy resources without incurring financial sanctions or other negative repercussions from Western countries, who are allied with Ukraine in the ongoing Russia-Ukraine conflict.