Russia says oil-for-goods deal with Iran could be sealed soon

Moscow | Reuters — Russia hopes a deal to supply grain and equipment to Iran in return for oil can be reached soon, Russia’s Economy Minister Alexei Ulyukayev said Sunday.

The deal “will affect not only grain, there are broad lists of goods… We expect that (a deal) could be reached in the near future,” Ulyukayev told reporters in Tehran, according to the RIA news agency.

In January, Reuters reported Moscow and Tehran were discussing a barter deal worth up to US$20 billion that would see Moscow buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods.

Such an agreement would enable Iran to significantly raise oil exports despite sanctions over its nuclear program, and give the slowing Russian economy a much-needed boost. But it would also strain relations between Moscow and the West at a time when they are already frayed over the Ukraine crisis.

The U.S. has warned Russia an oil-for-goods deal could run counter to nuclear talks between world powers and Iran, and might fall foul of U.S. sanctions.

Russia’s economy ministry was not available for comment on Sunday, but in April Finance Minister Anton Siluanov said Moscow would observe U.N. sanctions rules for any deal with Iran, rather than the tougher ones imposed unilaterally by the U.S.

Ulyukayev did not specify a date when deliveries of grain and equipment to Iran could start, but said discussions were continuing.

He said Russia was discussing supplying Iran with equipment for the oil and gas industry, agricultural machinery, cars, planes and electric generators, among other goods.

Iran and the six powers last Monday gave themselves seven more months to resolve a standoff on Iran’s nuclear programme that has seen crippling economic sanctions imposed on Tehran, and extended the partial easing of those sanctions that followed an interim agreement.

— Reporting for Reuters by Alexander Winning in Moscow.

About the author

Glacier FarmMedia Feed

GFM Network News

Glacier FarmMedia, a division of Glacier Media, is Canada's largest publisher of agricultural news in print and online.



Stories from our other publications