Iran Agrees To Oil For Food Deal With Russia, Oil Export Will Begin By Late September
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Russia’s energy minister Alexander Novak announced on August 20, 2017, a Russian oil-for-food deal with Iran that will be implemented next month by buying 100,000 barrels of oil a day from Iran.
Alexander Novak said that the deal will be in accordance with an agreement signed between the 2 countries earlier.
He said that Russia will begin receiving oil shipments at the end of September, adding he expected the deal to be reached within weeks. Russia’s state trading enterprise Promsirieimport has been authorized by the government to carry out the purchase, Novak said on the sidelines of an economic forum in Sochi.
The Interfax quoted Novak as saying that the amount of Iranian oil under the oil-for-goods agreement could reach 100,000 barrels per day, or 5 million tons a year from Iran.
For his part, Russian Trade Representative in Iran, Andrey Luganskiy, said that Moscow may in return export to Tehran goods worth $45 billion a year under this program.
Amir Hossein Zamaninia, Iranian deputy petroleum minister, told that Iran will receive its oil cash from Russia in Euros, adding 50% of the amount will be paid in cash and the rest will be used to finance import of goods from Russia to Iran.