World
A picture taken in March 2017 shows the Sabiti docking at an oil facility at Kharg Island, off the coast of Iran. Photo: Atta Kenare/AFP
ERBIL, Kurdistan Region - A senior Russian official on Thursday said that plans for oil and gas swap deals with Iran are underway as the two countries attempt to overcome sanctions restrictions against their energy exports.
A meeting in Moscow between Iran’s oil minister and Russia’s deputy prime minister discussed routes and mechanisms the two allies could take to expand their oil and gas cooperation, including the possibility of oil and gas swap deals.
“We are already working with them [Iran] in this direction, we are working out separate routes and mechanisms,” Russian state-owned media TASS cited Deputy Prime Minister Alexander Novak as saying.
Iran and Russia have sought to expand their economic and energy cooperation ever since hard-hitting sanctions were placed on Moscow following its February decision to invade neighboring Ukraine.
“The cutoff of Russian gas exports to Europe and the change in international conditions have allowed Iran to become a bridge for the transfer of Russian oil and gas products to other countries and turn to a gas hub in the region,” Iranian Oil Minister Javad Owji said, according to Iranian Press TV.
Iran also experiences its fair share of sanctions. The country boasts the world’s second largest proven gas reserves and fourth largest oil reserves but its exports have heavily been impacted by US sanctions following Washington’s decision to withdraw from the nuclear deal with the Islamic republic and world powers in 2018.
In June, the US imposed sanctions on an international network which includes companies from Iran, China, and the United Arab Emirates for aiding the Islamic republic’s sale of petrochemical products abroad.
The European Union on Wednesday agreed to impose further sanctions on Russia which are expected to include a price cap on Moscow’s oil.
Various routes are being discussed to facilitate the swap deals between Moscow and Tehran, including through the Caspian Sea, which borders both countries, as well as using rail and oil pipelines, according to TASS.
By Zheen Saman
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