The four-day Pakistan-Russia talks on Shareholding Agreement (SHA) on the 3 billion USD Pakistan Stream Gas Pipeline Project has concluded with the result of both sides failing to finalize the 175-page contract.
The News International reported that under the amended Inter-Governmental Agreement (IGA) signed in Moscow on May 28, this year, with Pakistan having 74 per cent shares and Russia 26 per cent, Islamabad requires to provide almost 2 billion USD against its shareholding.
Russia, however, needs to come up with 700-800 million USD investment as per its 26 per cent shares, the publication said. However, the takeaway of the visit is the resolution of both sides to resolve each other's concerns on some of the leftover clauses of the shareholding agreement draft in future bilateral interactions.
According to The News International, Pakistan and Russia would now formally hold negotiations in Islamabad in November. The publication citing its top sources said that the incompetence of the county's Inter-State Gas System (ISGS) has led to the failure of talks on the Shareholding Agreement as it hired a new law firm at the eleventh hour just prior to the legal talks on the shareholding contract. "The new law firm was not well prepared."
The delay in finalisation of the shareholding deal will cause a delay in the initiation of the project of paramount importance. Now Pakistan is left with no option but to keep the talks on the fast track in the days to come so that both sides could formally sign the shareholding agreement somewhere in the next month of November. Otherwise, the project would get delayed, which the country cannot afford. Under the original program, the PSGP is to be completed, executed and commissioned in 2023-24, the media outlet added.
Citing a statement issued by the Petroleum Division on Thursday, The News International reported that the parties agreed to continue working on the draft SHA during the next week, meaning that talks remained inconclusive.
( With inputs from ANI )
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