CEM REPORT, OIL & GAS | Away from Asia which has been its market since sanctions imposed resulting from its invasion of Ukraine, Russia is set to start exporting oil and gas to Pakistan by March.
A joint statement on Friday reveals that 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 a mutual economic benefit for both countries.
The agreement followed the end of a three-day visit by Russian Energy Minister Nikolay Shulginov to Islamabad, Arise News reports.
Russian crude oil has been subject to a European maritime embargo and a price cap decided by the EU, the G7 and Australia since December the measures intended to deprive Moscow of significant revenue.
Consequently, Russia announced that it would from February 1 ban the sale of its oil to foreign countries that comply with the price cap.
Pakistan, which relies on most of its energy imports from friendly Gulf countries, has long been hit by energy shortages because of a combination of factors including a poor economy, mismanagement and a lack of storage facilities.
The Pakistani government had earlier in December announced in early December that Russia had agreed to export oil to energy-starved Pakistan at a reduced price.