• Sat / 28 October 2017 / 16:20
  • Category: Economy
  • News Code: 96080603379
  • Journalist : 71477

Iran to start oil exports to Russia soon

Iran to start oil exports to Russia soon

Tehran (ISNA) – Iran will start crude oil export to Russia in the near future under an oil-for-goods barter scheme first conceived in 2014, deputy minister of petroleum Ali Kardor said on Saturday.

Kardor said banking problems related to the exports of Iranian oil to Russia had been resolved, which had made the opening letters of credit (LCs) possible, the ministry of petroleum’s Shana news outlet reported.

The arrangement dates back to 2014 under which Moscow would buy up to 500,000 barrels per day (bpd) of Iranian oil in exchange for Russian equipment and goods. It called for swapping around 300,000 bpd via the Caspian Sea and the rest from the Persian Gulf.

For now, the two sides are considering shipping 100,000 bpd of Iranian oil to Russia, with supplies being “either physical or swap-based,” according to Russian energy minister Alexander Novak. 

Kardor said, “Iran is about to receive 50% of payment in euros and the rest in goods and services”.

Russian oil and gas companies have signed a series of MoUs with Iran where Lukoil, Gazprom, and Zarubezhneft plan to develop Paydar Gharb, Abteymour and Mansouri oil fields.

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