Syed Fazl-e-Haider
A Russian delegation led by Deputy Prime Minister Alexei Overchuk arrived in Islamabad on September 18 for a two-day visit. To strengthen bilateral relations, they held separate meetings with top Pakistani leadership, including President Asif Ali Zardari, Prime Minister Shehbaz Sharif, and Foreign Minister Ishaq Dar. Connectivity and energy collaboration were the main focus of the bilateral discussion (Geo TV, September 19). This visit comes at a time when the two nations are exploring future liquefied natural gas (LNG) transactions. Moscow announced that it could export LNG to Pakistan by 2026, once its LNG export terminals are operational. This would allow for Pakistan to reconsider some of its previous agreements regarding LNG. Pakistan’s long-term LNG contracts signed in 2016 and 2021 with Qatar include price re-opening clauses, meaning Islamabad could renegotiate the LNG price with Doha in 2026. Russia’s LNG offer would become a strategic option for the South Asian nation to secure a favorable LNG import price amid Western sanctions restricting its options in the region (Energy Update, August 13). Pakistan has encountered numerous obstacles in building and establishing energy infrastructure, and a partnership with Russia would benefit not only Pakistan’s energy industry but also Russia’s sanction-bound economy.
In 2022, Pakistan initiated talks with Russia on energy purchases, particularly LNG and oil (see EDM, October 5, November 11, 2022; Dawn, September 19). Pakistan-Russia energy collaboration deepened in 2023 when Pakistan began purchasing Russian crude oil at a discount (see EDM, August 16, 2023). In September 2023, Pakistan received its first liquefied petroleum gas shipment from Russia (Express Tribune, September 18).
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