Pakistan, Russia in Talks for Oil Sector Agreement: Finance Minister

Pakistan and Russia are in talks over a potential agreement in the oil sector, with discussions currently underway between the energy ministries of both countries, Finance Minister Muhammad Aurangzeb said in remarks to Russia’s RIA news agency. Aurangzeb said Pakistan is keen to expand cooperation with Russia in oil exploration, production and refining, describing these areas as Russia’s core strengths. “We would be very happy if Russia agreed on an agreement in this sector with Pakistan,” he said. The talks come as both countries deepen energy cooperation amid shifting global dynamics. Russia has been seeking new energy markets following Western sanctions over Ukraine, while Pakistan has been looking to reduce its fuel import bill. Russia has also discussed upgrading a refinery in Pakistan, with Russian companies involved in the talks, Russian Energy Minister Sergei Tsivilev said in November. Aurangzeb added that Pakistan and Russia are also examining the possibility of setting up another steel plant in Pakistan. Pakistan began importing Russian crude in 2023 under a government-led arrangement. The first shipment, carrying 45,000 tonnes, arrived at Karachi port in June 2023 after Islamabad placed an initial order for 100,000 tonnes in April, following months of negotiations. A second cargo of 55,000 tonnes arrived later that month, with delays attributed to limited storage capacity at Pakistan Refinery Limited.