MELBOURNE: Russia and Pakistan are in talks on a potential oil-sector agreement, Finance Mini­ster Muhammad Aur­a­ngzeb told the Russian RIA news agency in remarks published 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,” Mr Aurangzeb told RIA in an interview when asked about wider cooperation in exploration, production and refining betw­een the two countries.

“At present, the issue is being discussed by the energy ministries of both sides.”

Russia also discussed upgrading a refinery in Pak­istan with Russian com­­panies involved, Russ­ian Energy Minister Ser­gei Tsivilev had said in November.

Pakistan has stepped up engagement with Russia in recent years as Moscow sought new energy markets after Western sanctions over Ukraine, and Islamabad looked to lower import costs. Pakistan began buying Russian crude in 2023.

Mr Aurangzeb also said Russia and Pakistan are looking into building anot­her steel plant in Pakistan, RIA reported.

Pakistan, which imports 70pc of its crude oil consumption, is mainly dependent on Russian crude exports, according to an Anadolu Agency report. Despite this, Pakis­tan has enjoyed lower tariffs from Washington and close relations with its current administration, even as India recently saw a punitive 25pc tariff impo­sed on its goods.

Correction: A previous version of this story quoted the Anadolu Agency report as saying that Pakistan was not a major buyer of Russian oil. The error is regretted.

Published in Dawn, December 17th, 2025