Islamabad/Moscow – Pakistan and Russia are actively engaged in broadening the scope of their economic cooperation, and a significant expansion oil-industry deal involving joint projects in energy production and exploration is under discussion.
The ongoing negotiations were confirmed by Pakistan Finance Minister Muhammad Aurangzeb to the Russian news agency RIA on Tuesday.
“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,” Aurangzeb stated, adding that the matter is currently being handled by the energy ministries of both nations.
The possible oil-sector transaction falls under a larger initiative to pursue cooperation, which also covers the joint ventures in oil and gas exploration, production, and refining.
It also involves deliberations on modernizing an already existing refinery in Pakistan, which had earlier been brought up by the Russian Energy Minister Sergei Tsivilev in November, and examining the possibility of another steel plant in Pakistan.
This energy shift will enable Pakistan to diversify its energy supply and pursue cheaper import prices and offer Russia new markets for energy without Western sanctions on the Ukraine war.
In 2023, Pakistan started to import Russian crude oil.
High-Level Diplomatic Push
The recent announcement of the finance minister is the continuation of high-profile diplomatic activity initiated by Federal Minister of Petroleum Ali Pervez Malik.
In October this year, a delegation, led by Minister Malik, attended the 14th St Petersburg International Gas Forum (SPIGF), where they emphasized the energy reforms and investor-friendly policies of Pakistan.
In a plenary session with the global industry leaders, Malik emphasized that the country is going to be diversified in energy use and be transparent so as to be sustainable in the long run.
On the periphery of the forum, Minister Malik conducted extensive consultations with Russian energy executives, including Gazprom Chairman Alexey Miller, where they agreed to intensify co-operation in exploration, joint ventures, and infrastructure development. He also discussed Russian investments in the Pakistani energy and minerals industries with Rusgeo and Nedra Digital, focusing on technology transfers and digital solutions to enhance efficiency.
At the SPIGF, Malik also held a meeting with the Minister of Energy and Natural Resources of Turkey, Alparslan Bayraktar, to talk about trilateral interaction in energy transport, liquefied natural gas, and mineral development.
Context of Expanding Ties
This strengthened partnership will be based on a previous consensus that was re-established at the September 2025 meeting between Russian President Vladimir Putin and Prime Minister Shehbaz Sharif in Beijing.
The two leaders agreed to increase cooperation in energy, trade, and regional integration, such as the creation of a trade corridor between Russia and Central Asia, Afghanistan, and Pakistan.
PM Sharif applauded the role of Russia, and he pointed out that bilateral trade volumes had risen significantly as a result of the imports of Russian crude in Pakistan. President Putin called Pakistan a traditional and valued partner in Asia and said he was looking forward to increasing economic cooperation.
