Pakistan has secured a pivotal agreement with Russia to restart imports of discounted crude oil beginning in January 2025. The deal was finalized during the 9th Inter-Governmental Commission (IGC) session in Moscow, where both nations agreed to strengthen their energy trade under a Government-to-Government (GtG) arrangement.
Under the terms of the agreement, Pakistan will import one cargo of Russian crude oil per month, totaling 12 shipments annually. Pakistan Refinery Limited (PRL) will oversee the imports and utilize the profits from these shipments for its upgrade projects, with additional incentives provided under the government’s Brownfield Policy.
Federal Minister for Energy Sardar Awais Leghari, who led Pakistan’s delegation, highlighted the significance of the agreement, noting that it would enhance the country’s energy security. Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, played a critical role in facilitating an acceptable payment mechanism for both countries, ensuring smooth financial transactions.
During the IGC discussions, both sides also addressed broader connectivity projects, including:
- Railway links between Pakistan and Central Asia,
- The delayed $3 billion Pakistan Stream Gas Pipeline (PSGP) project,
- Strategies to boost bilateral trade and regional cooperation.
A press release issued on Tuesday highlighted a meeting between Energy Minister Awais Leghari and Russian Minister for Transport Roman Starovoyt, where they explored opportunities to expand connectivity between Pakistan, Russia, and Central Asian countries.
The formal agreements, expected to be signed today (December 4), are seen as a step toward closer economic ties between Islamabad and Moscow, with broader implications for regional trade and energy collaboration.
Both countries expressed optimism about resolving logistical and payment challenges, marking a new phase of cooperation that could have far-reaching benefits for the region.
