Russian bank offers $1bn credit line to Pak

[Neo]

Russian bank offers $1bn credit line to Pakistan


ISLAMABAD: Pakistan and Russia on Friday 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 third meeting of Pak-Russia Inter-Governmental Commission on Trade, Economic, Scientific and Tech*nical Cooperation in Moscow, the two countries reiterated to cooperate with each other and encourage private entrepreneurs.

Also read: Pakistan, Russia sign landmark defence cooperation agreement

Finance Minister Ishaq Dar led the Pakistan's delegation while Russia's 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; innovative technology solutions in coal industry; and building and renovation of various power generating units in Pakistan, especially those of Russian origin.

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

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

Dar hoped collaboration in trade, economy, science, technology, agriculture, education and culture will gain new impetus due to continuous high-level interaction. "We are moving forward in the right direction."

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

Separately, senior executives of the Russian bank Vnesh*TorgovBank (VTB) met Dar, and offered a credit line of $1 billion for energy projects in Pakistan. They were also interested in visiting Pakistan for further financial transactions. Dar suggested that the bank should also participate in other projects besides energy.

A delegation of another Russian public-sector enterprise, Tyazh*promexport, headed by its First Deputy Director General Maxim Shabala, also held talks with Dar and reiterated its interest in rehabilitating and refurbishing Pakistan Steel Mills (PSM). Russia has also shown willingness for another state credit line of $1 billion for the mill's refurbishment.

The finance minister told the delegation that the government was working on divestment of 26 per cent equity in Pakistan Steel, hence the company should acquire the equity instead of extending loan to the PSM.

Dar assured the Russian side for early settlement of the issues of mutual claims and financial obligations and requested them to expedite a draft agreement on the subject in accordance with the earlier agreed parameters.

The inter-governmental commission is the most important mechanism to comprehensively discuss all spheres of bilateral relations between the two countries, especially energy sector projects.

During the talks, Dar was assisted by Minister of State for Petroleum and Natural Resources Jam Kamal Khan, Board of Investment Chairman Miftah Ismail, Ambassador to Moscow Zaheer Janjua, OGDCL chairman and senior officials of ministries of finance, industries and production, and petroleum.

Russian bank offers $1bn credit line to Pakistan - Pakistan - DAWN.COM

 

[Neo]

A good step in the right direction. Our current bilateral trade does not reflect the potential we both have. Russia is a lucrative market for cheap Pakistani fruit, fish and textiles and according to some sources the bilateral trade can extend to $5 billion in few years.

 

[Blackwater]

It's a lollipop

 

[DingDong]

Russian banks must support their dieing economy.

 

[ladder]

and offered a credit line of $1 billion for energy projects in Pakistan

Should I say more? The energy generation saga in Pak can put Bofors/ Howitzers acquisition saga in India to shame.

 

[Ray]

Russia wants Pakistan neutralised for pursuing its interest in Afghanistan after the US quits completely.

 

[anupamsurey]

A good step in the right direction. Our current bilateral trade does not reflect the potential we both have. Russia is a lucrative market for cheap Pakistani fruit, fish and textiles and according to some sources the bilateral trade can extend to $5 billion in few years.

yeah russians are real short of chadar, towels and mats.

 

[hit&run]

It means they have no money to buy Russian weapons.

It is the same business model, that China is doing with Pakistan. I clearly see Chinese inputs in this new relationship. Russia will start 1 billion dollar credit line, then Pakistan will buy Russian weapons on that credit. Now there is trail of money in this relationship. It means Putin should be shown the door and India must wake up to the task ahead than getting lost in stupid arguments of compulsive USA haters.

Now there are couple of things to deliberate as far as India is concern.

China recently had issues with approving couple of projects because the Pakistanis were not able to clear the circular debts and now Chinese are asking for guarantees of their payments. They are not ready to accept Pakistan's sovereign guarantee because Chinese argument is that they are already giving Pakistan loan on their balance of payment therefore they are asking for external account as guarantee.

With Russian line of credit I think they have just got another guarantor as Russia to satisfy China. I see Pakistan knocking more doors in near future for such loans of interested parties by selling itself as a key player post so called USA withdrawal from Afghanistan.

From Pakistani outlook it is clearly evident that they are indulge into arms race with India even at the cost of being into deep financial crunch that they will keep enduring for long time. Which is a good sign. As long as they are going to buy Russian weapons on Russian line of credit there is no hope for them to gain parity with India.

Why Russia is getting close to Pakistan is very difficult to explain at this juncture of time. One must not go by what Pakistani sources will say. The obvious trend with be to juxtapose India and Pakistan as Russia will go closer to Pakistan. This will be nothing but a fallacy of argument because India's requirement are different now as compare to our previous requirement.

It is quite evident form the larger out look of current dispensation that India will wean off its major dependent on Russian weapons but diversify its sources and ultimately invest money in indigenous efforts (read JV). At the end of the day every procurement bring a tranquil diplomatic relationship back home. India is accepted every where then why should't we spend the money to have a targeted diplomatic leverages and ultimately the weapon system of our choice than having no option but endure poor quality and shoddy supplies.

The BJP government is burying the commie idiocies, Nehruvian legacy of non alignment and skepticism of west and USA. The new partnership with Australia and USA have been maturing faster than what Dr. Manmohan Singh envisioned. Russia under Putin is becoming an East European brat and a diplomatic liability for India in current circumstances.

Russian relationship with Pakistan is because Russia jumping into Afghan quagmire via Pakistan is a far fetched reality. Russia can directly deal with Afghanistan and they haven't yet forgotten their address, they learnt during the invasion. Not only that, USA is never going to leave Afghanistan high and dry like it did before. The same I said couple of times ago that USA is going to stay. But Indians feed on Pakistani propaganda to an extent that now they are connecting Russian out reach to Pakistan or vice versa related to USA withdrawal from Afghan which hasn't yet happen.

I hope GoI is not going to take this argument of line from Russia, rather talk business and ask Putin to promise on PAKFA delivery time frame; which we amateurishly collaborated with Zero inputs or learning till today, even when they categorically named country like China as their would be buyer. A delayed date, no input, no learning, same amount of money spent, poor supply etc. is rather more hassling than buying off the shelf from USA.

 

[Apollyon]

Any Russian News Agency reported the same? OP linked a Paki source so take this news with a pinch of salt if you will.

 

[LETHALFORCE]

Russian companies offer USD 2 billion credit line for Pakistan