Iran and Russia are enhancing further their energy cooperation as Russian companies signed a deal to develop oilfields in Iran and the countries discuss the creation of a natural gas hub in the Islamic Republic.
Iran’s Oil Minister Mohsen Paknejad is currently on a visit to Moscow, where the two countries that are under U.S. sanctions committed to increase their cooperation.
Early this year, Iran and Russia signed a so-called Comprehensive Strategic Partnership Treaty, which included – among various other commitments – a pledge to expand cooperation in the energy sector, including in energy supply and swap operations.
Russia and Iran have been deepening their cooperation, including in the energy sector, for years, and especially after the Russian invasion of Ukraine cut off a lot of Moscow’s previous oil and gas customers.
Paknejad’s visit to Moscow this week comes as the two counties seek to forge deeper cooperation in the finance and banking sectors, too.
During the visit, Iran finalized four agreements with Russian companies to develop seven oilfields in Iran, the minister said. The deals are worth a total investment of about $4 billion, Iranian media quoted Paknejad as saying.
Russia and Iran also signed several memorandums of understanding (MoUs) in the oil and gas sector that could be finalized into contracts in the future. Teams of expert from both countries are negotiating the details of these possible new oil and gas contracts, Paknejad said.
In addition, Russia and Iran are holding talks on potential imports of natural gas from Russia, which could be followed by gas swaps and transit to other countries, according to the Iranian official.
Iran and Russia will also aim to double their annual bilateral trade to $10 billion, the Iranian minister added.
“The potential for trade between Iran and Russia is far greater than the current $5 billion level,” Paknejad was quoted as saying.
By Tsvetana Paraskova for Oilprice.com
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