Iran, Russia seal oil-for-goods barter deal

News ID: 9944

Iran » Iran

Publish Date: 15:40 - 26 May 2017

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Iran, Russia seal oil-for-goods barter deal

TEHRAN, May 26, YJC - Iran has reportedly signed an agreement with Russia under which it will sell crude oil to Russia in exchange for products.

TEHRAN, Young Journalists Club (YJC) - The announcement was made by Iran’s Oil Minister Bijan Zanganeh, as reported by Russia’s RIA and TASS news agencies.

"The deal has been concluded. We are just waiting for the implementation from the Russian side. We have no difficulties; we signed the contract, everything is coordinated between the parties. We are waiting for Russian oil companies to send tankers,” he said.

Iran’s Ministry of Petroleum is yet to officially confirm the report by the Russian media.

The agreement was initially reached in 2014 when Iran was under Western sanctions over its nuclear program.

Russian traders were to participate in the selling of Iranian oil. In exchange, Iran wanted essential goods and technology from Russia.

When the sanctions against Tehran were lifted in 2016, Russian Energy Minister Alexander Novak said the deal was no longer necessary.

However, Novak said in March 2017that the plan was back on the table with Russia buying 100,000 barrels per day from Iran and selling the country $45 billion worth of goods, Russia Today said in a report on its website.

Novak had announced in February that Russia’s state trading enterprise

Promsirieimport has been authorized by the government to carry out the purchase of Iran’s oil through the oil-for-goods program under study by both countries.

To the same effect, Zanganeh had been quoted by the media as saying that Iran would be paid in cash for half of the oil that would be sold to Russia. The due payments for the remaining half would be made in goods and services, the Iranian minister had said.

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Iran, Russia seal oil-for-goods barter deal