In a significant development, Pakistan has received its inaugural shipment of liquefied petroleum gas (LPG) from Russia, as announced by Moscow’s embassy in Islamabad on Tuesday. This landmark event marks Pakistan’s second substantial energy acquisition from Russia, underscoring the deepening energy cooperation between the two nations.
The delivery of this LPG shipment was facilitated with the assistance of Iran, reflecting the collaborative efforts of regional stakeholders. This achievement follows Pakistan’s earlier receipt of its first-ever consignment of Russian crude oil, a momentous outcome of a bilateral agreement reached earlier this year.
The genesis of this collaboration traces back to January 2023 when a high-level Russian delegation embarked on a diplomatic mission to Islamabad to finalize the intricacies of the energy deal. Over the course of a three-day meeting, both nations diligently addressed intricate technical matters such as insurance, transportation logistics, and payment mechanisms. Their collective commitment culminated in the signing of a bilateral agreement slated for late March of the same year.
A joint statement released by the delegations at the time articulated their shared vision: “After achieving consensus on the approved technical specifications, the oil and gas trade transaction will be structured in a manner that mutually benefits both nations economically.”
In a contemporary social media update, the Russian embassy confirmed the successful delivery of 100,000 metric tons of LPG to Pakistan, a transaction routed through Iran’s Sarakhs Special Economic Zone. While details regarding the cost of this LPG shipment and any potential discounts remained undisclosed, the embassy disclosed that consultations regarding a second shipment were currently in progress.
It is worth noting that Pakistan’s payment for the Russian crude oil was executed in Chinese currency; however, the precise value of the transaction was never disclosed. As Pakistan grapples with economic challenges, characterized by an acute balance of payments issue, the importation of discounted energy resources from Russia provides a much-needed respite, mitigating the risk of external debt default in Islamabad’s fiscal landscape.
By Reuters
