Pakistan has finalized an agreement to import Russian crude oil at discounted rates beginning January 2025. The deal was reached during the Inter-Governmental Commission (IGC) meeting held in Moscow, where Federal Minister for Energy Sardar Awais Leghari led the Pakistani delegation.

Under the Government-to-Government arrangement, Pakistan Refinery Limited (PRL) will import 12 cargoes of Russian crude annually. The profits generated from this deal will be reinvested into PRL’s upgrade project, supported by government incentives under the Brownfield Policy. This initiative is expected to enhance the refinery’s capacity and efficiency.

The payment mechanism for the deal has been resolved with the assistance of the Governor of the State Bank of Pakistan, ensuring smooth transactions through official banking channels. This step addresses previous concerns about payment hurdles in such agreements.

In addition to the crude oil deal, both sides discussed other key projects, including rail connectivity with Central Asia and the long-delayed $3 billion Pakistan Stream Gas Pipeline project. Final agreements on these matters are expected to be signed on December 4 (today), signaling progress in Pakistan’s energy and infrastructure collaboration with Russia.