Pakistan in talks with Russia for oil deal

Pakistan and Russia are holding talks on a possible agreement in the oil sector, Finance Minister Muhammad Aurangzeb has said.

Speaking to Russian news agency RIA, the finance minister said that agreement with Russia is being considered in areas such as oil exploration, production and refining. These are fields where Moscow had strong expertise, he added.

“All of these areas are Russia’s strengths. And we would be very happy if Russia agreed on an agreement in this sector with Pakistan,” he said.

The minister maintained that Pakistan would welcome a formal agreement if talks progressed.

He said the matter was currently under discussion between the energy ministries of the two countries.

Russia has also held talks on modernising a refinery in Pakistan, with Russian companies involved in the discussions, Russian Energy Minister Sergei Tsivilev said last November.

Pakistan has increased engagement with Russia in recent years as Moscow looks for new energy markets following Western sanctions over the Ukraine conflict, while Islamabad seeks to reduce fuel import costs.

Pakistan began importing Russian crude oil in 2023.

Aurangzeb also said both sides were exploring the possibility of setting up another steel plant in Pakistan, RIA reported.