Moscow will purchase poultry, fish and shrimp from Iran as an alternative source to avoid the deficit growing from Europe's sanction policy and Russia's countermeasures. Iran has agreed to supply oil in exchange for Russian goods, including grain.MOSCOW, December 17 (Sputnik) Russia intends tostart importing poultry fromIran and increase the import offish and shrimp fromthe country, Russian trade representative inIran Andrei Lugansky told RIA Novosti inan interview.
"Iran atsome point carried outa state program onthe construction ofpoultry farms, which is why this country can import inRussia a big amount ofchicken," Lugansky said Wednesday.
He also noted that Iran would increase the supply offish and shrimp toRussia, withall the details forthe delivery already finalized.
Last week, Russian state agriculture watchdog Rosselkhoznadzor said that the country might start importing fish fromIran asearly asDecember, once the necessary inspections are complete. The Iranian Agriculture Ministry said that 18 Iranian companies had plans tostart supplying fish products toRussia.
In October, Rosselkhoznadzor chief Sergei Dankvert said that Russia had shortlisted more than20 potential suppliers ofIranian seafood.
This move comes asRussia banned fora year virtually all food imports fromthe European Union, the United States and a number oftheir allies overeconomic sanctions imposed onMoscow forits alleged involvement inthe Ukrainian conflict. The embargo targets poultry and seafood, aswell asbeef, pork, fruit, vegetables and dairy products.
More restrictions followed the outbreak ofbird flu inseveral European countries inOctober, which prompted Russia toclose its doors toall imports ofcattle, swine and poultry by-products fromEurope. Russias agricultural agency has explained that pathogenic germs and heavy metals were repeatedly detected infood imports fromEU producers.
Black, Azov Sea Ports Key toBoosting Russian Grain Exports toIran
Deliveries ofgrain toIran fromRussia may significantly increase withthe use ofports inthe Black and Azov seas, Andrei Lugansky announced.
"This year, Russia has accumulated about110 million tons ofgrain, which greatly increased the country's wheat export capacity. Logistical and financial details pertaining tothe sale ofwheat toIran are currently discussed," Lugansky said onWednesday.
He pointed outthat logistics was the biggest issue toresolve as, unlikeCaspian Sea ports, the ports inthe Black Sea and the Azov Sea are fit tohandle the expected volume ofwheat deliveries, which may increase bythe end of2014.
Lugansky said that Russia and Iran were engaged inseveral projects aimed atincreasing the Caspian Sea region's grain receiving capacities, withTehran able toprocess upto 30 million tons ofgrain annually.
In September, Andrei Gormakh, first deputy chief executive ofRussian state-controlled grain trader United Grain Company, said that Russia and Iran were considering a deal forthe supply ofgrain inexchange foroil, withthe company able tosupply Iran with2.1 million tons ofgrain a year.
In November, Russian Economic Development Minister Alexei Ulyukayev said that Russia was preparing its first deliveries ofgrain and manufactured goods toIran.
In early December, Iranian authorities confirmed toSputnik News Agency that the country had agreed tosupply oil inexchange forRussian goods, including grain.
Russian and western oil companies are keen onreturning toIran once sanctions imposed onthe country are lifted, butit will require certain actions fromTehran, the Russian trade representative inIran told RIA Novosti.
"The negotiations [regarding the return toIran] are conducted bymany European and western companies. They see the upsides ofworking withIran: cheap workforce, cheap energy infrastructure inthe country, protection ofinvestments bythe domestic legislation and tax exemption," Lugansky said ina Wednesday interview.
According tothe official, sanctions imposed onIran bythe United States and the European Union are not the only obstacle hindering the re-entry offoreign oil companies intoIran. The countrys laws are also inthe way as, according tothe country's constitution, the Islamic republic owns all ofthe oil reserves onits territory and it is prohibited touse oil fields underproduction sharing agreements.
"In other countries, if a big oil company decides toextract oil, part ofit goes tothe state, while the other part goes tothe company. In Iran, any oil company has togive 100 percent tothe state and then wait forthe indemnification. They [Iranian authorities] are discussing possible ways toresolve the situation legislatively, inaccordance withthe production sharing principle," Lugansky said.
He refrained frommaking predictions abouthow long the negotiations betweeninternational oil companies and Iran might take, pointing outthe outcome depends onthe companies.
"This issues concern not only Russian companies, butmany western businesses that, despitethe sanctions, are willing towork withIranian oil," Lugansky said.
Last week, the National Iranian Oil Company (NIOC) said the countrys government would offer foreign investors new oil contracts totaling $40 billion in2015. Several energy giants Royal Dutch Shell, BP, Total and Russias Lukoil have expressed interest ininvesting inIran once sanctions onthe country are lifted, Iranian officials said earlier.
The West suspects Iran ofdeveloping a nuclear weapon underthe guise ofa civilian program. Tehrans controversial nuclear activities have triggered the imposition ofseveral rounds ofsanctions onthe country. In particular, the United States, the European Union, and a number ofother nations have banned domestic businesses fromentering intoany energy, missile or financial agreements withIran. These moves, alongwith other restrictions imposed onIrans oil and petroleum industry, have significantly hit the Iranian economy, which depends heavily onoil trade revenues.
By Sputnik News
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