Pakistan is preparing to hold crucial discussions with a Russian delegation arriving on January 17th, focusing on a possible long-term oil and liquefied natural gas (LNG) trade agreement, as well as the eagerly-anticipated $3 billion Pakistan Stream Gas Pipeline (PSGP) project. Comprising of 80 members, the delegation will participate in three-day bilateral negotiations under the Inter-Governmental Commission (IGC).
Federal Minister Sardar Ayaz Sadiq will be heading the Pakistani side during the IGC negotiations. In order for both nations to import Russian oil and LNG on a GtG basis, an inter-governmental agreement (IGA) must first be reached, similar to the agreement that was previously established and signed for the Pakistan Stream Gas Pipeline Project.
During former Prime Minister Imran Khan’s visit to Moscow in February 2022, the draft of the shareholding and facilitation agreement for the PSGP had not yet been completed. Both sides had hoped to sign the PSGP deal during the meeting, but due to disagreements on certain clauses of the shareholding agreement from experts on both sides, it did not materialize.
Currently, G7 countries have imposed a price cap of $60 per barrel on Russian crude oil and have prohibited Russian ships for oil transportation. In response, Moscow has stated that it will ban oil sales to countries that join a Western price cap on the country’s crude.
