Russia, Pakistan explore new oil deal as energy ties deepen
Islamabad and Moscow weigh expanded cooperation in energy and industry as Pakistan looks to cut costs and Russia seeks new markets.
Russia and Pakistan are holding talks on a potential agreement in the oil sector, signaling a deepening of energy cooperation as both countries look to advance strategic and economic interests.
Pakistan’s Finance Minister Muhammad Aurangzeb said discussions are underway between the two sides’ energy ministries, according to remarks published on Tuesday by Russia’s RIA news agency.
He said Pakistan is keen to work with Russia in areas where Moscow has strong expertise, including oil exploration, production and refining.
“All of these areas are Russia’s strengths,” Aurangzeb said. “We would be very happy if Russia agreed on an agreement in this sector with Pakistan.”
Russia’s search for diversified energy supplies
The talks come as Russia has intensified outreach to non-Western markets following sweeping sanctions imposed over its war in Ukraine, while Pakistan has sought to diversify energy supplies and lower import costs amid chronic balance-of-payments pressures.
Pakistan began importing Russian crude oil in 2023, marking a significant shift in its energy procurement strategy and a step toward closer economic ties with Moscow.
Beyond oil trade, cooperation could also extend to infrastructure and downstream projects. Russian Energy Minister Sergei Tsivilev said in November that Russia had discussed upgrading a refinery in Pakistan, with Russian companies expected to take part in the project.
Aurangzeb also said the two countries are exploring the possibility of building another steel plant in Pakistan, underscoring broader industrial cooperation beyond the energy sector.
Russia and Pakistan maintained limited engagement historically but have expanded cooperation in recent years in energy, trade and regional connectivity.