Pakistan and Russia are ready to sign a series of government-to-government agreements expected to be signed during the visit of Russian Deputy Prime Minister Alexey Overchuk on September 18-19, 2024. This high-level 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 3rd, 2024.
The visit is expected to solidify the growing bilateral relationship between the two countries, building upon the framework outlined in the 4th meeting of the Committee for Development of a Roadmap for Engagement with Russia held on July 19th, 2024.
Energy cooperation is at the forefront of the discussions. Pakistan and Russia are exploring a three-pronged strategy, focusing on procuring crude oil, importing LNG, and developing gas infrastructure in Pakistan. Pakistan successfully imported crude oil from Russia last year, with an initial shipment of 100,000 metric tons.
However, current payment issues have temporarily halted imports. 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 urging the implementation of this agreement, and a long-term G2G agreement is under consideration.
Russian company RusChemAlliance (RCA) is prepared 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 are sanctions-compliant, non-binding, and offer competitive prices.
Russia has also proposed a multi-stage plan for developing gas infrastructure in Pakistan, including revisiting the Pakistan Stream Gas Pipeline Project and exploring a pipeline from Iran to Pakistan and potentially India.
Beyond energy, the upcoming visit will also focus on strengthening trade ties, exploring financial collaboration, and fostering industrial partnerships.
This visit signifies a significant step forward in the deepening relationship between Pakistan and Russia, with both countries seeking to strengthen their economic and strategic cooperation.
