Russia, Pakistan explore alternative payment channels to bypass Western systems

Russia and Pakistan are working to identify alternative banking and payment mechanisms to reduce dependence on Western financial networks, Russian Ambassador Albert P. Khorev said on Thursday, citing long-standing transaction difficulties caused by international sanctions.

Addressing a press conference, Khorev said both sides were developing a roadmap to resolve payment-related challenges that have affected bilateral projects, including the stalled Pak Stream Gas Pipeline. He noted that US and EU sanctions had previously made it impossible to implement the project, underscoring the need for new financial channels. 

“We are working with Pakistan to find alternatives for payments to lessen reliance on Western systems,” he said.

The ambassador said cooperation between the two countries was progressing in the trade and energy sectors, adding that Pakistan and Russia had signed a memorandum of understanding for the revival of Pakistan Steel Mills. He said Moscow was committed to supporting the project and that both sides were closely examining banking-sector arrangements to facilitate cooperation. 

Khorev also referred to the recent meeting of the Pakistan-Russia Inter-governmental Commission in Islamabad, which he described as productive. He said both countries were expanding people-to-people contacts alongside efforts to strengthen cultural ties.

On regional issues, Khorev said Russia supported diplomatic solutions between Pakistan and India and was willing to facilitate dialogue if both sides agreed. However, he added that disputes, including Kashmir, should be resolved bilaterally without third-party involvement.

He welcomed efforts to improve regional connectivity between Pakistan and Central Asia, saying stronger links would also deepen Pakistan-Russia cooperation. The ambassador also praised Pakistan’s stance on the Ukraine conflict, noting that Islamabad had maintained neutrality despite external pressure and consistently called for diplomatic engagement.