Russian team is scheduled to arrive for oil talks today

Notably, the talks are set to take place amid the ongoing global oil crisis, making them particularly crucial. Consequently, the team is expected to bring new and innovative strategies to the table to help mitigate the crisis. All in all, the negotiations should prove to be a stepping stone for the global oil market, both now and in the future.

A high-level Russian delegation comprising 80 members, headed by the country’s minister for energy, is arriving in Pakistan today to attend the 8th session of the Inter-Governmental Commission (IGC) on trade and cooperation. During the three-day bilateral talks, the parties will discuss the oil and liquefied natural gas (LNG) trade deal for a long-term basis, the $3 billion Pakistan Stream Gas Pipeline (PSGP) project, electric power, hydropower, renewable energy sources, and oil and gas production cooperation. If successful, the talks could lead to a 30% discount, which would save Pakistan over $2 billion annually.

The Kremlin and Islamabad are set to hold bilateral talks on discounted oil and the much-touted $3 billion PSGP project, both of which have been hailed as major steps forward in improving bilateral ties.

Both countries have expressed an eagerness to cooperate on the project, which could have significant economic implications for both countries. Furthermore, the discounted oil deal could help reduce energy expenses and boost the overall productivity of both countries. This is expected to be an important milestone in strengthening ties between the two countries.

The talks of discounted oil from Russia come at an opportune time for Pakistan, as the country struggles to meet its LNG supply needs due to its diminishing gas reserves and constrained foreign exchange reserves preventing it from importing fossil fuels.

Last month, State Minister for Petroleum Musadik Malik announced that Russia had agreed to provide crude oil at discounted prices. This could reduce Pakistan’s energy import costs, with an inter-governmental delegation from Moscow visiting in the next month to firm up details and sign the agreement.

Although Malik did not specify the exact discount offered or when the imports would start, he did assure that the rate would be the same as those offered to other countries in the world.