News ID: 321893
Published: 1247 GMT May 27, 2022

Iran, Russia explore avenues to boost cooperation

Iran, Russia explore avenues to boost cooperation

Russian Deputy Prime Minister Alexander Novak explored all avenues with Iranian officials in Tehran to promote bilateral cooperation.

Heading a high-ranking delegation, Novak visited Tehran to attend the Iran-Russia Joint Economic and Trade Cooperation Commission.

Novak told Russias official TASS news agency that Moscow and Tehran had agreed to move to the highest possible level of mutual settlements in national currencies”.

Novak said Iran and Russia will continue talks to connect their electronic payment systems as well as their financial messaging systems.

Iran and Russia may introduce major barter arrangements to facilitate trade between the two countries, including a plan that could allow Iran to import steel from Russia in return for exports of car parts and gas turbines to the country.

Iranian Trade and Industry Minister Reza Fatemi Amin said that Iran will use barter trade with Russia to ensure supplies of raw materials for use in its metals and mining sector, Press TV reported.

Speaking on the sidelines of Iran-Russia Joint Economic and Trade Cooperation Commission in Tehran, Fatemi Amin said Iran will need to import raw metals like zinc, lead and alumina from Russia to respond to a growing domestic demand.

He said, however, that Iran and Russia had agreed to introduce barter arrangements for certain goods and commodities, including for Russian steel.

The minister said Iran will be able to export car parts and gas turbines to Russia in return for Russian steel imports.

He said some Iranian companies have signed deals to supply or repair gas turbines in Russian power plants.

Iran and Russia are planning to increase bilateral trade as they seek to offset the impacts of American sanctions targeting their economies.

Meanwhile, Iranian Oil Minister Javad Owji announced that Iran and Russia have signed three major memorandums of understanding (MoUs) to expand energy and banking ties.

The MoUs were signed on Wednesday during a meeting in Tehran attended by Owji and Novak, according to reports by Irans IRNA and Shana news agencies and reports in the Russian media. The two officials serve as co-chairs of the Iran-Russia Joint Economic and Trade Cooperation Commission.

IRNA quoted Owji as saying that Iran and Russia had agreed to use national currencies for settlement of trade and energy payments.

Owji said that Iranian and Russian government delegates had also signed MoUs on joint projects in the upstream and downstream of their oil and gas sectors.

He told Shana that under the deals, Iran will be able to export petrochemicals and technical and engineering services to Russia, including a homegrown technology on catalyst manufacturing.

Novak said he and Owji had discussed issues related to swap supplies of oil and gas between Iran and Russia, as well as ways to attract investment in the implementation of oil and gas projects.

Iranian sources indicated that under new agreements with Russia, Iran will be able to use the Russian territory to carry out swap deliveries of natural gas to other countries.

Under a similar agreement, Iran currently supplies gas to Azerbaijan in return for gas delivered to its northeastern border from Turkmenistan.

Novaks discussion of investment issues with Owji comes amid growing interest in Russian companies to become involved in Iranian in oil and gas projects.

The Iranian oil minister did not elaborate on further details about joint projects but said that Iran and Russia will seek to reach a target of $40 billion in annual value of economic ties as part of a joint efforts by the two countries to offset the impacts of American sanctions on their economies.

 

 

   
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