Russian LPG is first shipped to Pakistan

Pakistan has received its first supply of liquefied petroleum gas (LPG) from Russia, according to the Russian embassy in Islamabad, marking the South Asian nation’s second significant purchase of Russian energy.

The consignment follows Pakistan’s first-ever delivery of Russian crude under a pact the two countries established earlier this year, which the embassy claimed was delivered with Iranian assistance.

A Russian group arrived in Islamabad in January 2023 to hold negotiations to seal the accord. The nations agreed to deal with all technical concerns, including insurance, transportation, and payment methods, at the three-day summit in order to finalise an agreement by the end of March this year.

The oil and gas trade transaction will be organised in such a way that it has a reciprocal economic benefit for both countries, according to a joint statement released by the two sides at the time.

The Russian embassy claimed today that through Iran’s Sarakhs Special Economic Zone, Russia transported 100,000 metric tonnes to Pakistan.

Russia has delivered the first batch of liquefied petroleum gas (LPG) in the amount of 100 thousand metric tons to Pakistan through Iran’s Sarakhs Special Economic Zone. Consultations on the second shipment are underway
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— RusEmbassy_Pakistan (@RusEmbPakistan) September 26, 2023

Consultations on a second cargo, according to the embassy, are under progress. It was not immediately obvious how much the LPG cost or whether it was subsidised, and it did not go into depth about Iran’s involvement.

Although Pakistan claims to have paid for the Russian crude in Chinese yuan, no financial details of the transaction were ever made public.

The majority of Pakistan’s foreign payments are made up of energy imports, and discounted imports from Russia provide some relief as Islamabad struggles with an acute balance of payments issue and an economic crisis that puts it at risk of defaulting on its external debt.