29 Mar 2024
Saturday 25 February 2017 - 11:03
Story Code : 252472

Iran to sell Russia 1.5 Mln barrels of oil in exchange for technology, services

Sputnik- Iran plans to start selling 100,000 barrels of oil a day to Russia within the next 15 days, Iranian Student New Agency (ISNA) wrote, citing the countrys Oil Minister Bijan Zanganeh.





Briefing the media aftera meeting withhis Russian counterpart Alexander Novak inTehran, Zanganeh said that Iran would receive payment half incash and half ingoods and services.
We are looking forlong-term trade relations withRussia tominimize the effect offluctuations created bythe West, Bijan Zanganeh added.

In an interview withSputnik Persian, independent Iranian analyst Omid Shokri Kalehsar said that while the Western countries took their time waiting forUS President Donald Trumps actions regarding Tehran, Russia has become the first buyer ofIranian oil sincethe partial lifting ofsanctions agreed in2015.

In 2011 and 2012 the EU imposed a ban onthe import ofIranian oil overTehrans nuclear program. Meanwhile, there were media reports abouta barter oil deal being discussed byRussia and Iran whereby Iran would supply a daily 500,000 barrels ofoil toRussia inexchange Russian technology, equipment and services, Omid Shokri Kalehsar said.

However, afterIran and the P5+1 signed a nuclear agreement paving the way forlifting the sanctions fromTehran, the barter agreement was no longer need, he added.

Still, the agreement onthe planned supply to100, 000 barrels ofIranian oil toRussia reflects the two countries desire toexpand their energy cooperation.

Russias Lukoil and Gazprom companies are ready toinvest intothe Iranian oil and gas sector, which needs some $150 billion dollars worth ofinvestments. This would help Iran toextract more hydrocarbons thus cementing its position inthe global energy market, Kalehsar noted.
Lukoil and Gazprom will return toIran todevelop new oil and gas fields there.


After Iran and the P5+1 group ofinternational negotiators, including Russia, the United Kingdom, China, France, the United States and Germany, signed a comprehensive agreement onTehrans nuclear program inVienna inJuly 2015, European countries showed interest inIrans oil and gas sector, withthe election ofDonald Trump, they are biding their time waiting forthe new US President tooutline his position onthe 2015 nuclear deal withTehran.
Russian companies have none ofthese concerns though and will be the first toestablish themselves inthe Iranian oil market, way ahead oftheir European counterparts, Omid Shokri Kalehsar said.


A number ofRussian companies have already signed memorandums ofunderstanding withIranian companies.

Earlier this month, Russian Energy Minister Alexander Novak said that Moscow considers it possible toextend its participation inthe oil producing states' agreement onoutput cuts foranother six months, and will decide onthe issue inApril or May.

The Organization ofPetroleum Exporting Countries (OPEC) sealed a deal onNovember 30, 2016, agreeing tocut its oil output by1.2 million barrels per day forthe first six months of2017 inan effort tostabilize the oil market and bring oil prices tothe healthy range of $50-60 per barrel.

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