Putin offers enhanced energy supplies to Pakistan

We can overcome financial issues by renewing and expanding our trade under barter, says Shehbaz

ISLAMABAD:

Russian President Vladimir Putin on Wednesday offered Pakistan increased energy supplies, including crude oil, during his meeting with Prime Minister Shehbaz Sharif in Astana on the sidelines of the Shanghai Cooperation Organisation (SCO) summit.

Putin and Shehbaz are in Kazakhstan for the regional summit and this was their second meeting. Both leaders met in September 2022 in Samarkand on the sidelines of the SCO summit.

Pakistan has been keen to develop a close relationship with Russia as part of its efforts to diversify its foreign policy options despite pressure from the west.

In June last year, Pakistan received its first shipment of Russian crude oil under an agreement signed between the two countries.

The cargo carrying 45,000 metric tonnes of crude oil arrived at the southern city of Karachi while another 50,000 metric tonnes arrived a week later.

The first oil shipment was to test the process of crude oil in Pakistan and other logistics costs and issues before sustained supplies.

Experts believe it will be too soon to say if the deal will provide significant benefit to domestic consumers. Pakistan wanted to take advantage of the discounted oil supplies from Russia. But since the first shipment, there was no movement further.

Also read: PM Shehbaz expresses desire for enhanced bilateral cooperation with Russia

On Wednesday during a meeting with Prime Minister Shehbaz, Putin discussed the possibility of more energy supplies to Pakistan.

“I would like to particularly emphasise two key areas: cooperation in the energy and agro-industrial sectors. We have started supplying energy resources to Pakistan, and we are ready to further increase these supplies,” Putin told Shehbaz.

“As per your request, Russia is actively working to support Pakistan's food security by increasing grain supplies to the Pakistani market,” the Russian president added.

According to the Kremlin, President Putin told Shehbaz that he was “very glad” to meet him.

“We met two years ago, also on the sidelines of the Shanghai Cooperation Organisation summit in Samarkand, where we had the opportunity to discuss bilateral relations and our cooperation on the international stage,” according to the transcript released by the Russian president’s office.

“I would like to note that during this time, relations between the two countries have been developing in business-like and friendly spirit. We can also see a growth in trade, and prospects in this sphere look great.”

Putin also mentioned cooperation between two foreign ministries in various international organisations and on international platforms.

In his remarks Prime Minister Shehbaz said: “We are happy to see that our friendly relations have thrived over the decades. I hope that our meeting today will contribute to further strengthening the ties between Russia and Pakistan.”

“It is really a great honour and a pleasure to meet you, and I am very happy to meet you after we met in Samarkand on the sidelines of the SCO,” Shehbaz said.

The prime minister congratulated Putin on his re-election and expressed the hope that the Russian Federation will further progress under his “able leadership.”

Shehbaz told the Russian president that bilateral relations had had a positive trajectory over the last many years.

“This is a matter of great comfort for us and I would like to work with you closely to further cement our relations. We have a whole lot to do, and we can benefit from your experience,” he further said.

“We can certainly enhance our trade, which is at the moment approaching US$1 billion.

“And, of course, on my request, you were very kind to promote cooperation in the field of energy, and we received a shipment of oil from your great country, and I am very grateful for that. We really need to further move in this direction.

“Our relations stand on our own strength. Neither our relations are driven by any geopolitical contingency, nor are they impacted by our relations with other countries,” Shehbaz told the Russian president.

He said Pakistan has very long-standing business relations with Russia.

“During the 1950s, 1960s and 1970s, we had bilateral trade under barter. We used to import a lot of machinery and goods from erstwhile Soviet Russia, and we used to export textile and leather goods to your country, and it was under barter,” the prime minister said.

“I think that today is the time we can overcome financial and other banking issues by renewing our trade and expanding our trade under barter. That will be very beneficial to Pakistan, and we will be able to overcome lots of many other problems,” he said.