Iran, Russia find win-win strategy to get their oil to Europe

Iran, Russia find win-win strategy to get their oil to Europe

Baku, Azerbaijan, Feb. 15

By Umid Niayesh - Trend:

Iran and Russia are stepping into new strategic oil cooperation in the market, said Mehrdad Emadi, consultant at the U.K.-based Betamatrix International Consultancy, commenting on Lukoil's purchase of Iran's oil.

Recently, Lukoil has purchased crude oil from Iran to supply its refinery in Romania. On Feb. 14, three oil tankers including one of Lukoil, sailed from Iran's Kharg Island to Europe.

As Emadi told Trend, considering the latest restrictions imposed on Russia by the EU, Moscow has to face new challenges in selling energy derivatives.

"Furthermore, because of sanctions, refineries which have been sourcing their crude from Lukoil or Rosneft, are facing legal issues when they try to supply the refined output to EU member countries," Emadi said.

"Now that the sanctions on Iran have been lifted, with the approval of Russian oil companies, these European refineries find Iranians both willing and able to fill the gap left by the reduced supply from Russia," Emadi explained.

In a larger context, this is a win-win situation for Iran and Russia, given the tightening of the restrictions on Russia, according to the expert.

"Russian oil companies can continue business arrangements with European refineries and hence avoid being displaced by the competitors from Saudi Arabia, Kuwait and Iraq," said Emadi. "And as for the Iranian side, it is very keen to increase its presence in Europe and this allows it to achieve this objective with a smaller cost."

He further said that in the longer term, it seems that Iran is aligning its oil and gas strategy more closely with Russian energy companies.

According to Emadi, the deepening of split in OPEC between Saudi Arabia and its tactical allies - who are flooding the market and have inflicted immeasurable harm on the interest of oil exporting countries - and Russia and Iran, who perceive oil as a commodity with strategic values beyond its pricing significance, has resulted in new forms of cooperation between Russia and Iran.

"This is one of the many indications which we will see in the next 18 months," he underlined.

Follow the author on Twitter: @UmidNiayesh

Iran assigns more credit to develop Kermanshah Province
Iran assigns more credit to develop Kermanshah Province
Port facilities launched in Iran's Hormozgan Province
Port facilities launched in Iran's Hormozgan Province
Import of cars from Turkey to Russia down during COVID-19
Import of cars from Turkey to Russia down during COVID-19
Loading Bars
Latest
Iran assigns more credit to develop Kermanshah Province
Power plants put into operation in Iran's Khuzestan Province
Energy Community: Georgia has big potential to become regional gas trading center
President Ilham Aliyev: We are on right path, we are defending ourselves, we do not lay claim to anyone else's lands
Azerbaijani Prosecutor General's Office: Measures being taken to bring Armenian servicemen to justice
President Ilham Aliyev: I warned Armenia
President Ilham Aliyev: I congratulate all people of Azerbaijan!
President Ilham Aliyev: Army building always top priority of my activity
Azerbaijani president: As result of our focused, tireless efforts, world has broad picture of Nagorno-Karabakh conflict today
Azerbaijani president: Several occupied Azerbaijani settlements have been liberated
Azerbaijani president: There is high morale in all our military units, formations
President Ilham Aliyev: Everyone in their place, are ready to support our army and state at any time
Azerbaijani president: Armenia once again shows that its policy of aggression against Azerbaijan continues, this policy shows fascist essence of Armenia to whole world
Azerbaijani State Service for Mobilization: Martial law does not mean immediate mobilization
Qatar reports 234 new COVID-19 cases, 125,084 in total
Azerbaijani Defense Ministry: Ammunition depot of Armenian armed forces destroyed (VIDEO)
Azerbaijan to appeal to int'l organizations to hold tribunal over Armenia
Defense ministry: Azerbaijani armed forces destroy lot of manpower and military equipment
President Ilham Aliyev signs Decree declaring martial law
Turkish Foreign Minister: Armenia once again gets response on battlefield
EU official Joseph Borel expresses serious concern over situation in region during phone call with Azerbaijani MFA
Assistant to president: Azerbaijani army achieves major strategic advantage by liberation of Murovdag
Hikmat Hajiyev: Azerbaijani armed forces continue to liberate occupied territories
Polish MFA expresses deep concern with reported military clashes around Nagorno-Karabakh
MFA: Iran ready to employ all of its capacities to help establish a ceasefire
Five members of Azerbaijani family killed as result of Armenian shelling
Azerbaijani, Turkish MFAs hold telephone conversation
Azerbaijani Foreign Ministry urges international community to condemn Armenian official’s racist and chauvinist statement
Armenia confirms 16 people killed
Pakistani MFA: Armenia must stop its military action to avoid further escalation
Azerbaijani MFA, EU Special Representative for South Caucasus hold phone conversation
Turkish MFA: We will remain with our brothers, Azerbaijani Turks, till end
Azerbaijani Prosecutor General's Office: Number of wounded among civilians reaches 14
Azerbaijan's political parties issue joint statement on Armenian provocation against Azerbaijan
Azerbaijani, Russian MFAs hold phone conversation
Azerbaijan introduces martial law
Defense ministry: Armenian armed forces fleeing battlefield leaving combat vehicles behind (VIDEO)
Azerbaijani Defense Ministry: Murovdag peak of Murov mountain system liberated
PM Pashinyan urges Armenians to flee from Nagorno-Karabakh region to Armenia
Iranian Energy Exchange announces products to be on sale September 28
Defense ministry: Azerbaijani military command proposes Armenian garrison in Agdere to surrender
EEAS High Representative: Return to negotiations of Nagorno Karabakh conflict settlement needed urgently
Azerbaijani parliament make decision to introduce martial law
Iran’s Bahar Azadi gold coin price still rising
UN High Commissioner for Refugees: Crucial that Armenia and Azerbaijan heed calls for de-escalation, calm
Azerbaijani president: Armenia will be held accountable for this crime
NATO deeply concerned by large-scale military hostilities in Nagorno-Karabakh conflict zone
ICRC calls on Armenia, Azerbaijan to take all measures necessary to ensure that civilian life and infrastructure respected, protected
Iran expands volume of gas reserves
Azerbaijani defense minister: Armenian armed forces retreating suffering big losses
Ukrainian MFA deeply concerned with escalation of conflict between Armenia, Azerbaijan
Azerbaijani community of Nagorno-Karabakh issues statement on Armenia’s recent attack (VIDEO)
MFA: Georgia express readiness to contribute to de-escalation of Armenian-Azerbaijani conflict
Azerbaijani president: I have said several times, including from UN platform recently, that Armenia preparing for new war, and Armenia must and will be stopped
Israel-Azerbaijan International Association urges Armenia to stop occupation policy
President Ilham Aliyev: Azerbaijan will never negotiate with puppet junta regime
Azerbaijani president: Ours is the cause of justice, we will win
Azerbaijani president: Armenia received their punishment this time again and will continue to receive it
France reiterates its commitment to reaching negotiated and lasting settlement of Nagorno Karabakh conflict
Turkish president phones Azerbaijani president
OSCE Chairperson-in-Office calls for return to ceasefire around Nagorno-Karabakh
German Federal Foreign Office appeals to end hostilities within Nagorno Karabakh region
President Erdogan: Turkey with all its capacities close to Azerbaijan
Assistant to president: Security Council holds meeting chaired by Azerbaijani supreme commander
Iran reveals its COVID-19 data for September 27
Azerbaijani parliament to hold meeting
Azerbaijani Defense Ministry shared video footage from battlefield
Azerbaijan confirms 132 more COVID-19 recoveries
Azerbaijani Defense Ministry: Armenian armed forces’ defense line broken through, 7 villages liberated from occupation
Kazakhstan's MFA calls to abandon use of force, start negotiations
Council of Europe Secretary General calls on Armenia, Azerbaijan to immediately stop hostilities
Hajiyev: Azerbaijani people united around supreme commander
Hikmat Hajiyev: Armenians distributing old videos
President of European Council appeals for military action to stop within Nagorno Karabakh conflict
Azerbaijani Prosecutor General's Office: 9 wounded civilians hospitalized
Azerbaijani BestComp Group wins CISCO Corporation's tier-one partnership
Weekly review of Azerbaijan's transport sector
Georgia president: Very concerned with resumption of hostilities between Armenia, Azerbaijan
Turkish Parliament Speaker: Armenia - terrorist state that threatens not only Azerbaijan
Turkish ambassador: Turkey has always been and will be next to Azerbaijan
Defense ministry discloses villages liberated by Azerbaijani army
Zakharova: Russian FM intensively conducting talks on situation in Nagorno-Karabakh region
OSCE MG co-chairs appeal to cease hostilities within Nagorno-Karabakh conflict
Azerbaijan's MFA: Full responsibility for current situation falls on Armenia
Assistant to president: Azerbaijani armed forces liberate number of occupied territories
Azerbaijani president chairs meeting of Security Council (PHOTO)
Defense Consultant: Any activities conducted in Nagorno Karabakh by Armenia - illegal
CSTO makes statement regarding aggravation of Nagorno-Karabakh conflict
President Ilham Aliyev: Armenia plans to occupy Azerbaijani lands and does not hide it
Armenia confirms casualties suffered from its military attack on Azerbaijan
Iranian Offshore Oil Company boosts extraction
President Ilham Aliyev: Azerbaijani army currently inflicting blows to Armenia's military positions
Azerbaijani NGOs appeal to presidents of US, Russia, France due to Armenian provocation
Ombudsman makes statement on Armenia's gross violation of ceasefire with Azerbaijan
Net profit of Azerbaijani banks slightly drops
Port facilities launched in Iran's Hormozgan Province
Azerbaijan's import of cars from Turkey down
Import of cars from Turkey to Russia down during COVID-19
Cargo shipment data from Italy via Turkey's port disclosed
Azerbaijan discloses names of civilians wounded as result of Armenia's attack
All news