Iran hopeful to kick off crude export to Russia by Late Sept.

Business Materials 20 August 2017 13:26 (UTC +04:00)

Tehran, Iran, August 20
By Mehdi Sepahvand – Trend:

Iran is hopeful to be able to start exporting crude oil to Russia by late September, according to the country’s Deputy Oil Minister for International Affairs Amir Hossein Zamaninia.

A contract to that effect was finalized about two months ago and it consists of exporting 100 thousand bbl/d of oil to Russia, Zamaninia told Radio Iran News August 20.

He further explained that Russia will pay half of the oil money owed to Iran in euros and the other half in credit for goods Iran imports from Russia.

The arrangement dates back to 2014 when Iran tried to boost vital energy exports in the face of intensified Western sanctions. At the time, it was said that Moscow and Tehran were discussing a barter deal that would see Moscow buy up to 500,000 barrels a day (bpd) of Iranian oil in exchange for Russian equipment and goods.

On August 18, Russian Energy Minister Alexander Novak said Iran can start within next month the deliveries of crude oil to Russia under the "oil-for-goods" program.