Russian companies offer $2 billion credit line for Pakistan energy and steel sectors

ISLAMABAD: Russian companies have expressed readiness to provide $2 billion credit for Pakistan's energy and steel sectors, according to a media report today.

The offers were made yesterday during Finance Minister Ishaq Dar's visit to Moscow to attend Third Pak-Russia Inter-Governmental Commission on Trade, Economic, Scientific and Technical Cooperation, the Dawn reported.

Senior executives of the Russian bank Vnesh-TorgovBank (VTB) met Dar and offered a credit line of $1 billion for energy projects in Pakistan, the paper said.

They were also interested in visiting Pakistan for further financial transactions, while Dar suggested that the bank should also participate in other projects besides energy.

Also, a team of another Russian public-sector enterprise, Tyazh-promexport, headed by its First Deputy Director General Maxim Shabala, held talks with Dar and expressed interest in rehabilitating and refurbishing Pakistan Steel Mills (PSM).

The paper said Russia has shown willingness for another state credit line of USD 1 billion for the mill's refurbishment.

During the meetings, Pakistan and Russia expressed their determination to remove all impediments in the way of finalising plans and projects already agreed upon.

In a joint statement issued at the conclusion of the meeting, the two countries pledged to cooperate with each other and encourage private entrepreneurs.

Russian delegation was headed by Minister of Sport, Tourism and Youth policy Vitaly Mutko, who is also co-chair of the commission.

Both countries said they would cooperate in various projects related to oil and gas exploration; construction of floating LNG terminals, North-South gas pipeline from Gwadar to Nawabshah; sharing of seismic and geological data; enhanced oil recovery; LPG processing facility and gas purification plants; modernisation of oil and gas infrastructure etc.

The two sides discussed cooperation in transnational energy projects, including CASA-1000 and TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline.

Major Russian companies in the energy sector including Technopromexport, Rostec-Global Resources, Rushydro International, Power Machines, Inter RAO, United Engine Corporation, and Stochinsky Institute of Mining have shown keen interest in cooperation with Pakistan.

Russia's Mutko said both the countries enjoy strategic geographical locations and are endowed with rich human and material resources, which offer immense possibilities.