Russia may start importing crude from Iran next week as part of an oil-for-goods agreement, Iranian Energy Minister Bijan Namdar Zanganeh said.
“We hope that next week” Russia will take its first imports, Zanganeh told reporters on board a plane from Vienna late on Friday, after attending a meeting of the Organization of Petroleum Exporting Countries. “Much of this will be for cash and we will be using this money to buy commodities from the Russians.”
Iranian oil exports have dropped 50 percent since international sanctions against the country were tightened in 2011 amid a dispute over its nuclear program. Companies that trade with Iran are barred from doing business with U.S. and European operators. World powers including Russia and the U.S. plan to complete talks with Iran by the end of June to end the decade-long impasse over its atomic program.
Zanganeh said he discussed the deal with Russian Energy Minister Alexander Novak in the Austrian capital on June 3. The country plans to buy “much lower than 500,000 barrels day” in exchange for cash, which Iran will then spend on Russian goods including steel, wheat and oil byproducts, he said.
Kazakhstan and Belarus will be able to purchase Iranian crude shipments from Russia under the agreement because they are part of the Eurasian Customs Union, Zanganeh said.
Russia may also work with Iran on various projects in exchange for oil, Zanganeh said, without elaborating.
dolanbaker on Sat, 6th Jun 2015 8:24 am
Win – Win for Russia and Iran, Russia gets to trade with Iran and export extra oil at world prices and Iran gets to exchange their oil for goods & food, thus bypassing the US led sanctions.
dolanbaker on Sat, 6th Jun 2015 8:26 am
No doubt that this oil will not appear on the Iran/OPEC export list, while Russia will appear to increase “production”
rockman on Sat, 6th Jun 2015 1:37 pm
donlan – And maybe Russia doesn’t even need to keep two sets of books: they might utilize all the Iranian oil for internal consumption and actually be exporting only Russian production.
Trade sanctions only work when they work. Provide motivation to enough varies parties and they’ll find a way to dull the teeth on some of those sanctions. And then maybe somewhere down the PO path they’ll be able to impose their own meaningful counter-sanctions.
BobInget on Sat, 6th Jun 2015 1:58 pm
US and European sanctions drove Iran into the welcoming arms of China and Russia.
Alliances, pipeline deals, are long term.
Next thing ya know, US also loses Iraqi
oil despite, possibly because, American intervention speeded up a process long in the making.
Once a majority of Iranian oil goes through Russia and China, how much threatening
will be effective against Iran?
While most folks here are obviously bored by my incessant oil war reminders, I should point out these wars, with the exception of Sudan,
are all highly asymmetric. Any war with Russia or China would be too devastating
to be profitable. While wars, ostensibly fought over religious differences, can linger on for decades while hardly harming principals.
Iran and Saudi Arabia, for instance, can fight to the death… of the last Syrian,off balance Jihadist. With more then half Arab men unemployed, it’s no wonder is gains recruits
faster then they get killed off.
Two million Sudanese refugees, over one hundred thousand dead. Have you seen ANY
Western Concern? Could it be as long as oil keeps flowing, who gives a flying hoot?
Makati1 on Sat, 6th Jun 2015 9:26 pm
With Russia and China at your side, you can give the Empire the finger without too much concern of reprisals. When Iran gets those Russian S300s and S400, the US/Israel will be powerless to force the Iranians to do any thing.
Apneaman on Sat, 6th Jun 2015 9:53 pm
BobInget, rarely, if ever, do you see religious wars when even a modest majority are prospering or just secure. All wars are economic/resource wars at the root. The crusades? You had a bunch of Knights and aristocracy running around robing, raping and pillaging the European peasantry; disrupting things. Bad for the Catholic church, so call for a crusade in the holy land and let it be known that a happy by product will be land and riches for those non first born, non inheriting sons of the noble warrior class. Oh and all sins will be forgive as well.