Russia may buy 5 million tons of Iran’s oil per year

EghtesadOnline: Moscow and Tehran may agree the terms of Russia’s purchases of 100,000 barrels of Iranian oil per day in the nearest future which amounts to about 5 million tons of oil per year, Russia’s Energy Minister Alexander Novak said on the sidelines of CERAWeek conference on Tuesday, TASS reported.

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08 March 2017

"We hope to complete the required paperwork in the nearest future," he said when asked when the agreement may be ready.

According to Novak, the issue is about either physical deliveries or swap supplies of Iranian oil.

Earlier Iran’s Oil Minister Bijan Namdar Zanganeh said following a meeting with Novak on February 21 that Tehran is ready to make an agreement on supplies of 100,000 barrels of crude oil per day to Russia within the next 10-15 days, ILNA reported.

The ministers also discussed potential ‘oil-for-goods’ swaps at the meeting, as well as the progress in implementing the oil production cap agreement.

Novak also said Russia is negotiating the issue of daily purchases of 100,000 barrels of oil from Iran, and the sides are "discussing the terms" of the potential agreement. The issue is about submitting amendments to the memorandum signed by the two countries in 2014, the Minister said.

According to Novak, oil purchases from Iran may be executed by Russia’s federal state unitary enterprise Promsiryeimport.

Oil swaps enable Iran to optimize oil deliveries to refineries in the north of the country because the greater portion of oilfields is concentrated in the South Iran.