ISLAMABAD, Nov 28(ABC): Pakistan may be inching closer towards striking an oil import deal with Russia as top petroleum division officials are off to Moscow to explore possibilities of buying Russian crude oil at discounted rates, The News reported.
The delegation comprising State Minister for Petroleum Division Dr Musadik Malik and Captain (retd) Muhammad Mahmood, Additional Secretary (In-charge) Petroleum Division, will also discuss the mode of payment, shipment cost, etc.
Earlier, talking to a private news channel, Federal Minister for Finance Ishaq Dar said the delegation would hold talks with the Russian oil authorities to cut a potential import deal.
“We should pray that the visit is successful and the government manages to secure a deal on favourable terms and conditions,” he said while speaking to the TV channel on Friday.
The import of Russian oil and gas has been a much-talked-about subject in Pakistan since the ouster of the PTI government, when former prime minister Imran Khan claimed to have achieved a breakthrough during his visit to Moscow in February 2022.
Later, he accused the present rulers of backtracking from it under the influence of the US after Russia invaded Ukraine.
According to official documents, the work started for talks on Russian oil and gas after Prime Minister Shehbaz Sharif met with Russian President Vladimir Putin in Samarkand on the sidelines of the SCO summit in September this year.
As a follow-up, Dr Malik approached the Russian minister of energy and expressed the desire of Pakistan to enter into an arrangement with the Russian authorities for importing two to three LNG cargoes per month in the immediate future as well as on a long-term basis.
The letter written by the Petroleum Division in the middle of October this year received a response from the Russian energy minister and the Russian Embassy in Pakistan.
In a forwarded communication to Dr Malik, the Russian authorities proposed the minister to meet with representatives of Russian companies to discuss the issue of LNG supplies to Pakistan.
The documents revealed that Pakistan’s Ministry of Foreign Affairs also informed the government about its correspondence with the US Embassy in Pakistan.
Meanwhile, the US Embassy informed the foreign ministry that coalition group, including the US, G7, EU, and Australia have agreed to finalise the cap on Russian oil, which would benefit oil importers from Russia. Pakistan could also take advantage of this development.
Pakistan termed the positive response from the Russian side encouraging in the light of the prevailing tight market for LNG, the cap on Russian oil, and Pakistan’s rising energy demand.
Following the receipt of a positive response from Russia, the prime minister proposed to send a two-member delegation to Moscow for two days, according to the official letter.