September 10, 2023
Currency Pakistan

Pakistan to pay for Russian energy purchases in ‘currency of friendly countries’: Russian official

When they begin in late March, Pakistan will pay for its energy imports from Russia in “currency of friendly nations,” a senior Russian energy ministry official said on Friday, according to Reuters.

The declaration was made during the ninth meeting of the Pakistan-Russia Intergovernmental Commission, which was co-chaired by Russian Energy Minister Nikolay Shulginov and Minister of Economic Affairs Sardar Ayaz Sadiq today in Islamabad. The two nations have decided to send crude oil to Pakistan by the end of March, according to Shulginov.

As stated by Pakistan’s Minister of State for Petroleum Musadik Malik last month, a Russian delegation led by Shulginov is currently in Islamabad to discuss ways to improve bilateral economic and trade relations, with a particular emphasis on the provision of oil and gas to Pakistan at discounted rates.

Both nations agreed that the “oil and gas trading transaction would be organised in a manner that offers [a] mutual economic advantage for both countries,” according to a joint statement published today. The procedure will be finished by March 2023, the statement said. A protocol on the exchange of papers and information on the customs value of items moved between the countries, a working agreement on aeronautical products, and an agreement on customs issues were all signed by the parties.

Both parties have committed to work on a “Comprehensive Plan for Energy Cooperation,” which will serve as the framework for ongoing efforts and be completed in 2023, according to the statement’s further information. Both parties agreed to take into consideration the Pakistan Stream Gas Pipeline Project (PSGPP) as a “complete infrastructure, which is economically feasible for sustained gas infrastructure development providing inexpensive gas supplies.”

Both nations addressed “new methods of conducting business, including via barter,” according to the joint statement, and they decided to look into the possibility further. They also decided to designate focal individuals from both sides to address problems pertaining to connectivity and logistics in Central and South Asia, while also agreeing to exchange information for the development and improvement of rail and road infrastructure.

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