Oil Deal With Russia Not a Barter

Oil Deal With Russia Not a BarterOil Deal With Russia Not a Barter

Deputy Oil Minister Seyed Mohsen Ghamsari reiterated that the so-called oil-for-goods agreement reached between Moscow and Tehran is not a barter deal.

Officials from both sides have often confirmed, denied and later reconfirmed the barter deal. "The agreement should not be referred to as a barter deal," Ghamsari was quoted by ISNA as saying. "But we are not going to publicize the details."

Many observers and experts opine that Oil Minister Bijan Namdar Zanganeh, a known champion of the free-market, is not in favor of this or similar barters.

Negotiations are still underway, he said, adding that a preliminary agreement was reached between Iran and Russia whereby the latter will buy and then export Iranian crude oil. The revenues from the will then be used to import commodities from other countries.  

Russian President Vladimir Putin’s press secretary, Dmitry Peskov, said in April the oil-for-goods deal is “absolutely a reality" and has begun. "Russia has started supplying grain, equipment and construction materials to Iran in exchange for crude oil under the barter deal," RT had quoted him as saying.

According to reports, Moscow will buy up to 500,000 barrels of Iranian oil per day in exchange for Russian equipment and goods. The deal is estimated at $15-20 billion, but no official figures have been reported so far.