Energy cooperation with Russia

While Pakistan struggles with an enormous energy deficit, news from Moscow says Pakistan and the Russian Federation have signed a Memorandum of Understanding (MoU) to pursue joint ventures in the oil and gas sector. Pakistan's Minister for Petroleum, Syed Naveed Qamar, who was on a short visit to Moscow for the signing ceremony also held a meeting with the CEO of the energy giant, Gazprom, and discussed ways and means to enhance co-operation.
A major producer and exporter of oil and gas, Russia has a lot to offer Pakistan in both exploration and commercial exploitation of energy resources. The MoU promises co-operation in exploration, construction of gas pipelines, training, technology transfer and other areas of mutual interest. It can go a long way in improving this country's energy security.
Notably, the Shaukat Aziz government too had expressed a lot of enthusiasm about entering into energy co-operation with Russia, but not much happened on the ground. This country now faces an acute energy crisis. There is no more time to waste. It is imperative therefore that the MoU is put on the fast track to turn it into an agreement so that work can begin as soon as possible. Time is important also because such energy projects have a long gestation period.
Joint energy ventures with Russia present at least two significant benefits in economic as well as political fields. As it is, energy exploration, commercial exploitation and construction of trans-national pipelines like the Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects require huge investments.
Pakistan, at present, confronts major resource constraints, and hence is in no position to develop these or domestic projects on its own; it needs foreign investors. In the case of IP pipeline, American sanctions against Iran inhibit most international companies from investing in it. Russia has no such qualms. In fact, the country's minister for energy, S I Shmatko, who co-signed the MoU with Naveed Qamar, is reported to have evinced keen interest in investing in Pakistan's domestic energy sector, and also in the construction of the IP and TAPI projects.
He said his country would want to participate in developing joint ventures with the Oil and Gas Development Company Limited (OGDCL) for explorations and development of oil and gas prospects in Pakistan, and offered technology and investment for the purpose - both would be equally welcome.
Forging closer economic ties with Russia will also bring political dividends in the form of reducing this country's dependence on the US. Whatever the rationale for becoming a Cold War ally of the US, fighting its wars and promoting its regional agenda, the times have changed. The world has come a long way from the Cold War era, and even Nato is looking for a new relationship with its erstwhile enemy Soviet Union's successor state, the Russian Federation. Pakistan too needs to rethink its dependence on the US, and shape new alliances in its neighbourhood and beyond. Hopefully, the proposed energy co-operation with Russia would prove to be an important step in that direction.