Azer News- Half of the funds that Iran receives from the contract to supply oil to Russia will be spent on financing joint projects, Iranian Ambassador to Russia Mehdi Sanaei said in an interview with RIA Novosti.

The envoy emphasized that it is wrong to call this a "contract on oil swap for goods�.

�We do not have a contract on oil swap for goods,� said Sanaei, adding that this is a contract for the purchase of oil.

Under the contract, 50 percent of revenues from oil sales will be spent on implementation of various joint projects, while the remaining part of the amount is transferred to the Central Bank of Iran, he noted.

The ambassador expressed hope that the contract's implementation will be continued in 2018, "because this is an important contract."

�After all, on the one hand, its implementation will make us closer in energy relations, and on the other hand, it will help solve one of the main problems in the Iran-Russia relations � the lack of financial sources,� added the diplomat.

Sanaei said the contract will help create financial resources for the Russian-Iranian joint projects.