Islamabad, December 16, 2025 — Pakistan and Russia are engaged in discussions for a potential oil-sector agreement, Finance Minister Muhammad Aurangzeb confirmed in an interview with RIA News Agency on Tuesday.
“All of these areas are Russia’s strengths. We would be very pleased if Russia agreed on an agreement in this sector with Pakistan,” Aurangzeb said, referring to cooperation in oil exploration, production, and refining. He added that the matter is currently under review by the energy ministries of both countries.
The talks come as Russia has shown interest in upgrading Pakistan’s refineries with the involvement of Russian companies, according to Russian Energy Minister Sergei Tsivilev in November.
Pakistan has strengthened its energy ties with Russia in recent years, as Moscow seeks new markets following Western sanctions over Ukraine, while Islamabad aims to reduce its import costs. Pakistan began importing Russian crude in 2023 under government-led arrangements. The first shipment, totaling 45,000 tonnes, arrived at Karachi port in June 2023, followed by a second cargo of 55,000 tonnes later that month. Delays in the second shipment were attributed to limited storage capacity at Pakistan Refinery Limited (PRL).
Aurangzeb also highlighted discussions between the two nations on establishing an additional steel plant in Pakistan, signaling broader industrial collaboration.
The Finance Minister’s remarks underscore Pakistan’s ongoing efforts to diversify its energy sources and strengthen economic ties with Russia, while addressing domestic energy needs and cost efficiencies.
This potential agreement could further solidify Pakistan-Russia cooperation in energy and infrastructure sectors, reflecting growing strategic engagement between the two countries.