Pakistan and Russia have agreed to strengthen energy cooperation
Pakistan and Russia have agreed to enhance energy cooperation and trade and expand energy infrastructure investment based on strategic and favorable trade terms.
The agreement was reached at Friday’s 8th meeting of the Pakistan-Russia Intergovernmental Commission in Islamabad.
It was co-chaired by Economy Minister Sardar Ayaz Sadiq and Russian Energy Minister Nikolai Shulginov.
Sardar Ayaz Sadiq later read a joint statement with the Russian Energy Minister, saying the two sides agreed to work on a comprehensive energy cooperation plan that will form the basis for future work and is expected to be completed by 2023.
It was agreed that after consensus on technical specifications, oil and gas trade transactions would be structured mutually beneficial for both countries. This process will be completed in March this year.
It was agreed that Pakistan Stream Gas Pipeline should be considered a comprehensive infrastructure and economically viable project for sustainable development of gas infrastructure to ensure affordable gas supply.
Sardar Ayaz Sadiq said that Pakistan and Russia have reaffirmed their commitment to a strong and cooperative economic relationship and reiterated that such a relationship contributes to the economic well-being of both countries and the region.
Both sides explored other possibilities for cooperation. They agreed to strengthen cooperation in trade, investment, higher education, customs, communications and transport, industry, railways, agriculture, science and technology, and information technology.
It was agreed that relevant ministries and unions of both parties would follow closely to harness the potential in various sectors for common prosperity.
The Russian side has been invited to potential projects of the federal and provincial governments of Pakistan, including in the public-private mode. Russian businessmen were asked to explore this opportunity.
They agreed on the appointment of focal persons who will strengthen cooperation and discuss related issues
connectivity and logistics in Central and South Asia.
The two sides also discussed innovative ways of doing business, including bartering, and agreed to explore this possibility further.
For regional integration and Eurasian connectivity, the two sides agreed to share information on railway and road infrastructure development and improvement.
After the conclusion of the 8th meeting of the Pakistan-Russia Intergovernmental Commission, the two sides also signed three agreements in the field of aviation and customs matters.
Sardar Ayaz Sadiq said that some other agreements are also in the pipeline.
Pakistan and Russia on Friday, January 20, agreed to enhance energy cooperation, boost energy trade and expand energy infrastructure investment on strategic and favorable trade terms.
They reached this understanding at the conclusion of the eighth meeting of the Pakistan-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation (IGC) held in Islamabad. It was chaired by Nikolai Shulginov, Minister of Energy of the Russian Federation and Ayaz Sadiq, Federal Minister of Economy of Pakistan. The session was also attended by high-level delegates, including ministers and officials from both parties.
Both sides agreed on March 2023 as the timeline for oil exports.
Under the explicit leadership of Prime Minister Shahbaz Sharif and President of the Russian Federation Vladimir Putin, both sides took the opportunity to reaffirm their commitment to a strong and comprehensive economic relationship. They reiterated that such a relationship contributes to the economic well-being of both countries and the entire region.
Building on the discussions and decisions of the Seventh Intergovernmental Conference, the two sides continued the process forward and explored further opportunities for cooperation.
In a joint statement alongside the Russian Energy Minister, Sardar Ayaz Sadiq said the two sides agreed to further enhance and strengthen cooperation in trade and investment, energy, communication and transport, higher education, industry, railways, finance and banking sectors. , customs, agriculture, science and technology and information technology.
They noted positive prospects for realizable and concrete projects in the above-mentioned sectors of the economy with great potential for the socio-economic development of both countries.
The commission agreed that the relevant ministries and unions on both sides would rigorously monitor this potential for shared prosperity.
They also agreed that oil and gas trade would be structured in a way that would be of mutual economic benefit. The process will be completed in March 2023, Sadiq said.
The two sides agreed to strengthen energy cooperation, strengthen energy trade and expand investment in energy infrastructure based on strategic and favorable business terms. They agreed to work on a “Comprehensive Plan for Energy Cooperation” which will form the basis for future work. It is due to be completed in 2023.
In addition, both parties agreed that the Pakistan Stream Gas Pipeline project should be considered as a comprehensive infrastructure that is economically viable for the sustainable development of gas infrastructure to ensure affordable gas supply.
The Russian side was invited to potential projects of the federal and provincial governments of Pakistan, including under the PPP mode, and asked Russian businessmen to explore the possibilities.
All outstanding issues regarding the exchange of information on “certificates of origin” using electronic verification systems have been resolved. The plan is to aim for the completion of the above protocols by the end of May 2023.
The two sides agreed to appoint focal persons to strengthen mutual cooperation and discuss connectivity and logistics issues in Central and South Asia.
They also agreed to take necessary measures to increase bilateral cooperation in the field of science, technology and higher education, especially academic ties, collaborative and impactful research, training and development, and increase the interest of Pakistani citizens in education in the Russian Federation.
Both sides decided to promote regional integration and Eurasian connectivity. And also explore innovative ways of doing business, including bartering
Russian Energy Minister Nikolai Shulginov, who is visiting the country, also said that Pakistan will pay for energy purchases from Russia when they begin in late March, in the currencies of friendly countries.
Pakistan’s Minister of State for Petroleum Musadik Malik while talking to the media revealed that Pakistan wants to import 35% of its total oil requirement from Russia. Currently, Russia does not have liquefied natural gas (LNG) for Pakistan, Malik said.
The following documents were also signed during the meeting (8th IGC):
- Agreement on Cooperation and Mutual Assistance in Customs Matters between the Government of the Russian Federation and the Islamic Republic of Pakistan.
- Protocol on the exchange of documents and data on the customs value of goods transported between the Russian Federation and the Islamic Republic of Pakistan.
iii. Working agreement on the airworthiness of aircraft products.