Russia has agreed with Iran to cooperate with each other on gas and oil. Specifically, the Russian state-owned company Gazprom and the National Iranian Oil Company would work together to develop oil and gas fields and build pipelines under the LNG framework.
The deal would be worth a total of $40 billion. $10 billion would go to a project in the Kish and North Pars gas fields in the Persian Gulf. Another $15 billion would go to help increase pressure in South Pars, the world’s largest gas field. There are no details yet on other investments.
In addition, Iran’s national oil company will work with Gazprom to complete LNG projects and build gas export pipelines.
It is not only about investment, but also about trade
The agreement is not only about investments, but also deals with energy exchanges between the two countries. At the same time, trading of the Russian ruble and the Iranian rial has started in the foreign exchange market. So we see an effort to significantly strengthen the ties between these countries.
Russia is beginning to cooperate more and more with countries in Asia. We recently informed you that Russia has become the largest supplier of oil to China. Exports to India and other countries are also picking up. So it is now strengthening its relations with Iran, and at the same time, there are plans for negotiations with Turkey. Russia cannot continue to rely on the same trade cooperation with Europe and the US as before, so it is going in the other direction.
The largest foreign commitment in history
That’s how the National Iranian Oil Company describes the deal. At the same time, according to the company, Russian oil investments account for up to a quarter of all investments in this sector in the country. So we can see that this cooperation is beneficial for Iran.