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Iran and Russia sign gas contracts worth $6.5 billion

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Iran and Russia have signed contracts worth approximately $6.5 billion for gas cooperation, according to a Minister.

The newly signed contracts are extensions of a $40 billion memorandum of understanding (MoU) signed in July between the National Iranian Oil Company (NIOC) and Russia’s Gazprom, Xinhua reported citing Deputy Foreign Minister for Economic Diplomacy Mehdi Safari.

Safari expressed hope that the remaining parts of the MoU would be turned into contracts within a month, adding that negotiations are underway in this regard.

He also stated that the gas swap agreement between Iran and Russia is nearing completion, with the only issue remaining to be resolved being the choice of an intermediary country for sending Russian gas to Iran.

The Minister stated that Iran’s plan is to import Russian gas while exporting Iranian gas to foreign markets, noting that this will benefit his country by lowering the costs of transporting Iranian gas from the south to the north.

The collaborative project will also help increase political solidarity among Iran, Russia, and intermediary countries like Turkmenistan and Azerbaijan, contributing to the region’s political stability, security, and peace, according to Safari.

He added that the two countries would also agree on the details of a contract for swapping oil and petroleum products in the coming days, which was discussed in October during Oil Minister Javad Owji’s visit to Russia.

Safari stated that the two countries’ focus in their oil swap negotiations is on a 10-million-tonne annual target.

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Brendan Taylor

Brendan Taylor was a TV news producer for 5 and a half years. He is an experienced writer. Brendan covers Breaking News at Insider Paper.

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