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Government to negotiate with russian firms

Islamabad: The federal government has agreed in principle to negotiate with Russian companies regarding expansion plan of the Pakistan Steel Mills Corporation (PSM) and Iran-Pakistan gas pipeline.

The scheduled visit of the chairman Board of Investment (BOI) is being considered very important. The chairman BOI is leaving for Russia on May 9th to take part in negotiations on the expansion plan of the PSM with Russian companies Evraz S. A Russia International and Severstal Russia International.

Talking to Business Recorder, Chairman BOI Saleem Mandvewalla said Russian companies repeatedly showed their interest in doubling the production capacity from 150,000 to three million tons.

The visit of chairman BOI is a follow up visit of President Asif Ali Zardari to Russia in which MoUs in industrial and oil and gas sectors were signed.

Evraz S.A Russia International Evraz Group S.A. is a large vertically-integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Europe, USA, Canada and South Africa. The company is the 14th largest steel producer in the world based on crude steel production of 15,3 million tones in 2009. Similarly, Severstal Russia International is another world’s leading vertically intergraded steel and mining companies with key assets in Russia, the US and Europe.

The second agenda, which will be discussed, is Iran-Pakistan gas pipeline. Two Russian giants Gazprom Russia International and Lukoil Russia International showed their interest in the construction of gas pipeline. Like, Gazprom, LUKOIL is also one of the world’s biggest vertically intergrated companies for production of crude oil and gas, and their refining into petroleum products and petrochemicals. The company is a leader on Russian and international markets in its core business.

Prior to the chairman BOI’s visit to Russia, a meeting of government departments was also called on Wednesday to discuss existing MoUs with Russian companies. The meeting was attended by the oil and gas development company, the Ministry of Industries, Economic Affairs Division and Ministry of Law and Justice.


Business Recorder Karachi, 05.05.2011