After the annual intergovernmental commission meeting between Pakistan and Russia came to a close, the two countries decided on the deadline for crude oil exports in late March.
Musadik Malik, the minister of state for petroleum, confirmed the rumors, saying that Pakistan intends to buy 35% of its entire crude oil needs from Russia. The state minister added that Russia does not yet provide Pakistan with liquefied natural gas (LNG).
Russian Energy Minister Nikolay Shulginov, who is now in Pakistan, also stated that Pakistan will pay for its energy imports from Russia in currencies of friendly nations when they begin in late March.
As the eighth session of the Pakistan-Russia Inter-Governmental Commission on Trade, Economic, Scientific and Technical Cooperation (IGC) came to a close, Islamabad and Moscow reached an understanding that the oil and gas trade transaction will be set up so that it benefits both nations economically.
The leaders also decided to expand energy infrastructure investment, improve energy commerce, and promote energy cooperation under advantageous strategic and commercial circumstances.
A “Comprehensive Plan for Energy Cooperation” that will serve as the framework for future work and be completed in 2023 has been agreed to by both parties.
The federal and provincial governments of Pakistan welcomed the Russian side to consider prospective initiatives, including those involving public-private partnerships and asked the Russian businesses to investigate these options.
According to a joint statement made in this regard, “Both sides have resolved the outstanding issues related to the exchange of information on certificates of origin of goods with the use of an electronic verification system and shall endeavor to finalize the above-mentioned protocols by the end of May 2023.”
In order to improve their mutual collaboration and talk about issues pertaining to connectivity and logistics in Central and South Asia, the authorities decided to designate focus points from each side.
It was also resolved at the talks held over the last three days that creative business practises, such as barter trade, would be used. They also agreed to further investigate the possibility.
According to the statement, “the two sides agreed to share information toward expanding and strengthening rail and road infrastructure in the framework of the objective of both parties to enhance regional integration and Eurasian connectivity.”
The following documents were also signed during the session:
- Agreement regarding cooperation and mutual assistance in customs matters.
- Protocol on the exchange of documents and data on the customs value of goods transported.
- Working agreement on the airworthiness of aeronautical products.
The eighth session proceeded from the discussions and decisions of the seventh IGC and carried the process forward, as well as explored additional avenues of cooperation.
Additionally, Pakistan and Russia decided to strengthen their cooperation in the areas of commerce and investment, energy, communication, and transportation, higher education, industry, railroads, banking, finance, customs, agriculture, science, and technology.