Russia and Pakistan intend to expand cooperation in the energy sector, Russian Foreign Minister, Sergei Lavrov, said at a meeting with Pakistani Foreign Minister Bilawal Bhutto Zardari.
“Moscow and Islamabad have a mutual desire to increase bilateral cooperation, primarily in the energy sector and other sectors of the economy,” the Head of Russian diplomacy said.
Last week, Pakistani Minister of State for Petroleum, Musadiq Malik, told The News that his country is going to start buying oil from Russia in April. It was reported that deliveries will not be paid in dollars.
“In March, all commercial terms of the agreement will be finalized with Russia, following which low-cost crude oil will start arriving in Pakistan. It will be beneficial for both countries,” Malik promised.
Under an agreement with Russia, Pakistan has also started work on devising a Holistic Energy Security Plan that will be implemented by the end of this year, which includes the import of Liquefied Natural Gas (LNG), piped gas, and other petroleum products.
“Crude oil, LNG, gas, petrol, and other fuels will be included in this strategy, and it is expected to boost Pakistan’s energy security and supply of fuels at affordable prices,” he said.
The Minister said that for the time being, Russian firms don’t have gas to export to Pakistan, but for the next winter season, under another agreement, Pakistan would be able to buy spot LNG cargoes from two companies that the Russian government had identified.
The fact that Russia and Pakistan are coordinating the volume of oil supplies, discussing logistics, insurance, and payment issues was also stated by Russian Energy Minister Nikolai Shulginov.
As reminded, after the introduction by Western countries of a ceiling on oil prices from Russia, Moscow announced that it would not supply raw materials to foreign buyers if the contracts directly or indirectly provided for a mechanism for fixing the marginal cost.
Source: RIA Novosti