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Iran Oil Supply to Russia Likely Next Month

Oil Supply to Russia Likely Next MonthOil Supply to Russia Likely Next Month

Moscow and Tehran may soon agree upon conditions for the sale of 100,000 barrels of oil per day, according to the Russian energy minister.

Iran can start deliveries to Russia under the "oil-for-goods" program within the next month, Russian Energy Minister Alexander Novak told reporters on Friday, TASS reported.

"We are finalizing the last details of regulatory documents. I think I will respond to your question within one month," Novak said, confirming that supplies can start by the end of that term.

According to Novak, supplies can be either physical or swap-based.

Oil Minister Bijan Namdar Zanganeh was quoted as saying by Russia’s RIA that Iran signed an agreement with Russia under which it would "sell", or rather barter crude oil to Russia in exchange for products.

"The deal has been concluded. We are just waiting for the implementation from the Russian side. We have no difficulties; we signed the contract; everything is coordinated between the parties. We are waiting for Russian oil companies to send tankers,” Zanganeh said in May.

According to Reuters, the $20 billion agreement was initially signed in April 2014 when Iran was under international sanctions over its nuclear program. Russian traders were to participate in the sale of Iranian oil. In exchange, Iran wanted essential goods and technology from Russia.

In March 2017, Novak said Russia would buy 100,000 barrels per day from Iran over an unspecified period and sell the country $45 billion worth of goods, Russia Today reported.

Novak had announced in February that Russia’s state trading enterprise Promsirieimport was authorized by the government to carry out the purchase of Iran’s oil through the oil-for-goods program under study by both countries.

Zanganeh had been quoted by the media as saying that Iran would be paid in cash for half of the oil that would be sold to Russia.

Payments for the remaining half would be made in goods and services, the Iranian minister had said.

 

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