Iran And Russia Will Start Oil-Product Swap As Ties Deepen Under Sanctions

COMMODITIES(B-Trams):After meeting with Iranian Oil Minister Javad Owji in Grozny, Deputy Prime Minister Alexander Novak told that without providing any additional information, that the range of swapped products would be expanded.

According to reports interfex and Tass, the discussions also covered the development of ports in the Mediterranean and Caspian Seas, the possibility of Russian participation in order to boost Iranian oil production, and an international north-south freight corridor that would connect Russia and India via Iran.

Since Russia’s invasion of Ukraine at the end of February, Tehran and Moscow have worked hard to strengthen their economic and military ties, despite the sanctions imposed by the US. Due to its alleged involvement in providing Russia with weapons for the conflict, the Islamic Republic faces additional sanctions.read more …

Iran also wants to invest in a stalled LNG project and pipeline to Pakistan, as well as a gas swap deal with Moscow in which it would import Russian gas through an intermediary country to boost exports from the Islamic Republic. Novak stated that the gas swap issues “are still being worked out,” but he did not elaborate.

Novak added that the Russian gas conglomerate Gazprom PJSC may conclude agreements on projects in Iran by the end of November.

Iran’s semi-official Fars News quoted Deputy Foreign Minister for Economic Affairs Mehdi Safari as saying on Monday that Iran and Russia have signed oil and gas contracts worth $6.5 billion as part of a memorandum of understanding that calls for up to $40 billion in deals.

Novak stated that ties between Russia and Iran are “of a strategic nature.” We want to do everything in our power to improve these relationships.