Russia to sell oil and gas to Pakistan

 

 Russia and Pakistan announced in a joint statement on Friday that Pakistan will begin importing oil and gas from Russia by March under conditions that will ensure "mutual economic gain."


Since beginning its military offensive against Ukraine, Moscow has faced economic sanctions from the West. As a result, it has drastically decreased its hydrocarbon supply to Europe and turned to Asia to make up the difference.

“Both sides agreed that after consensus on the technical specifications achieved, the oil and gas trade transaction will be structured in a way such that it has mutual economic benefit for both countries,” the statement said.

“The process will be completed in March,” it added.

It came after the conclusion of Nikolay Shulginov, the Russian energy minister three-day ,'s trip to Islamabad.

Early in December, the Pakistani government stated that Russia had agreed to offer discounted oil exports to energy-scarce Pakistan.

Since December, Russian crude oil has been subject to a European maritime embargo and a price cap set by the EU, the G7, and Australia, two actions designed to deny Moscow a sizable sum of money. 

 In response, Russia declared that it would stop selling its oil to those nations that adhere to the price cap as of February 1.


Pakistan has historically struggled with energy shortages due to a number of issues, including a weak economy, bad management, and a lack of storage facilities. Pakistan imports the majority of its energy from friendly Gulf nations.


This winter's load shedding has had an effect on local businesses, households, and industries, including Pakistan's main industry, textile manufacture, which has temporarily closed certain operations.