ISLAMABAD: Pakistan and Russia are poised to sign a series of government-to-government agreements during the two-day visit of Russian Deputy Prime Minister Alexey Overchuk on September 18-19, 2024.
This high-profile visit, the first in several years, follows discussions between Prime Minister Shehbaz Sharif and Russian President Vladimir Putin at the SCO Summit in Astana, Kazakhstan, on July 3, 2024.
The visit aims to strengthen the burgeoning bilateral relationship, building on the framework established during the 4th meeting of the Committee for Development of a Roadmap for Engagement with Russia on July 19, 2024.
Energy cooperation will be a key focus of the discussions. Both countries are exploring a three-pronged approach: procuring crude oil, importing LNG, and developing gas infrastructure in Pakistan. Last year, Pakistan imported an initial shipment of 100,000 metric tons of crude oil from Russia, though imports have been temporarily halted due to payment issues.
A B2B agreement between Pakistan Refinery Limited and JSC Promsyrioimport for a monthly supply of 50,000 tons of crude oil was signed in October 2023.
The Pakistani embassy in Moscow is advocating for the implementation of this agreement, with a long-term government-to-government deal also under consideration.
Russian company RusChemAlliance (RCA) is ready to sign two framework agreements with Pakistan LNG Ltd (PLL) for the supply of LNG as spot cargo and on a long-term basis starting in 2027. These agreements will be sanctions-compliant, non-binding, and are expected to offer competitive prices.
Furthermore, Russia has proposed a multi-stage plan for developing gas infrastructure in Pakistan. This includes revisiting the Pakistan Stream Gas Pipeline Project and exploring the possibility of a pipeline connecting Iran to Pakistan and potentially India.
The visit will also address other areas of cooperation, such as strengthening trade ties, exploring financial collaboration, and fostering industrial partnerships.
The visit marks a significant step forward in deepening the economic and strategic relationship between Pakistan and Russia, as both countries look to enhance their cooperation.
