Pakistan has finalized an agreement with Russia to restart the import of crude oil at discounted prices, as announced during the Inter-Governmental Commission (IGC) meeting in Moscow.

According to the News, the trade is set to commence in January 2025, with Pakistan committing to purchase one cargo of oil per month under a Government-to-Government (GtG) arrangement.

Federal Minister for Energy Sardar Awais Leghari, who is leading Pakistan’s delegation, confirmed that Pakistan Refinery Limited (PRL) will import a total of 12 cargoes annually.

The State Bank of Pakistan’s Governor, Jameel Ahmad, played a crucial role in establishing a payment mechanism that will facilitate smooth transactions between the two countries.

Discussions at the IGC meeting also covered enhancing rail connectivity with Central Asian states and advancing the delayed $3 billion Pakistan Stream Gas Pipeline (PSGP) project.

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The final agreements are expected to be signed today, marking a significant step towards strengthening cooperation between Pakistan and Russia.

The discounted crude oil will be used to support the refinery’s upgrade projects, benefiting from government incentives under the Brownfield Policy.

Minister Leghari, alongside Russian Minister for Transport Roman Starovoyt, also evaluated opportunities for expanding bilateral connectivity, which aims to benefit not just the two nations but the entire region.