MOSCOW: Russian Energy Minister Alexander Novak has expressed hope to proceed with oil cooperation with Iran within the framework of exchanging oil for goods.
Novak rejected a report that Moscow has bought oil from Tehran noting that the Russian state trading enterprise ‘Promsirieimport’ has not purchased Iran’s oil but it is only brokering between Iran and foreign sides.
He said that oil cooperation between Tehran and Moscow was based on a deal signed between the two sides in 2014.
The Russian official expressed hope for a surge in Iran’s crude exports to Russia, noting that the deal allows elevation of oil exchange volumes to five million barrels per day.
According to the Russian media, Iran signed an agreement with Russia in 2014 under which it has broken free from the petrodollar, and sells, or rather barter crude oil to Russia in exchange for products.
Earlier, Iranian Petroleum Minister Bijan Zanganeh had reported on plans to ship 100 thousand barrels of oil per day to foreign markets with assistance of Russians.
“On the basis of a joint agreement, Iran delivers 100 thousand barrels of crude oil per day to Russia who, in turn, deploys the product to certain other countries,” he had stated following a meeting with Novak.
“Fifty per cent of the worth of shipped consignments will be paid to Iran in cash in specific intervals while the remaining part will be allocated to imports of Russian commodities for which there is a demand in the Iranian market,” Zanganahe had underlined.
