"In March, all commercial terms of the agreement will be finalised with Russia, following which low-cost crude oil will start arriving in Pakistan. It will be beneficial for both countries," Malik was quoted as saying by Pakistani newspaper The News.
Pakistan has also started to develop a Holistic Energy Security Plan, which will be accomplished by the end of 2023 and include the import of Russian liquefied natural gas (LNG), piped gas, and other petroleum products, according to the report.
Last week, Russian Energy Minister Nikolay Shulginov and Pakistani Economy Minister Ayaz Sadiq held a meeting, where the sides agreed to approve all the details of oil and gas supplies by March. Shulginov specified that discussions on Russia’s oil supply to Pakistan would start only after February 5, when the price ceiling on Russian refined products, introduced by the Western countries, goes into effect.
The energy minister noted that Russia could take part in Pakistan’s power generation projects, including on modernization and construction of hydroelectric power plants, as well as modernization of thermal power plants.
Western countries have been seeking ways to limit Russia's income from oil and gas exports, as well as their dependence on Russian fuel since the country launched a military operation in Ukraine on February 24, 2022. O
n December 5, the European Union placed a price cap of $60 per barrel on Russian crude oil, and was joined by the G7 nations and Australia. The EU sanctions provide for a price ceiling on Russian refined products starting from February 5, 2023.