Russia May Become Strategic Buyer of Pakistani Steel Works

There is information that Russian companies are showing interest in buying a 26 percent state stake in Pakistan Steel Mills (PSM). It is noteworthy that it was the USSR that implemented this metallurgical megaproject in 1970, while Russia is currently showing interest in PSM.

A Pakistani steel mill was privatized by former Prime Minister Shaukat Aziz, but then the Supreme Court thwarted the privatization of the plant. Since then, Pakistan has suffered losses associated with this plant. A Pakistani official said his country had asked Russia to fund a major strategic project at the Diamer Bhasha Dam, and the Russian authorities responded positively. Russia wants to invest in various sectors of the Pakistani economy.

Pakistan is also interested in a defense deal with Russia, and to this end, a dialogue will be held between the two countries in the near future. In the defense sector, Russia can provide Pakistan with helicopters and commercial aircraft. Russia has also expressed a desire to help Pakistan with energy conservation and coal processing projects in Muzaffargarh, Jamshoro and Guddu. Russia will play a key role in increasing Pakistan's oil reserves. According to the official, in Pakistan, there are many wells that have dried up and Russia will help to extract oil and gas from these wells using special technologies.

In addition, Russian companies will also become partners in exploration and production joint ventures with Pakistan's Petroleum Limited, which will develop oil and gas fields in that country. Russia will be provided with equipment for the exploration of gas and oil, as well as for the production of electricity.