Russia and Iran discuss swapping supplies for oil and gas, goods logistics

Russia may supply its energy to northern Iran, while at the same time Iranian oil and gas could be exported to Asia Pacific regions from the south, Russia's Deputy PM said.

 A logo of Russian state oil firm Rosneft is seen at its office in Moscow, October 18, 2012 (photo credit: MAXIM SHEMETOV/REUTERS)
A logo of Russian state oil firm Rosneft is seen at its office in Moscow, October 18, 2012
(photo credit: MAXIM SHEMETOV/REUTERS)

Russia and Iran have discussed swapping supplies for oil and gas as well as setting up a logistics hub, Russian Deputy Prime Minister Alexander Novak said on Wednesday, as Moscow is challenging Western sanctions over its military operation in Ukraine.

Russia has been tackling Western sanctions, which curbed its oil exports and production by restricting trade and financing. The United States banned imports of Russian oil shortly after Moscow sent troops to Ukraine, while the European Union is considering a phased embargo, pushing more Russian oil cargoes towards Asia.

"Iran could become a key transportation and logistic hub for ensuring mutual transportation of goods."

Russian Deputy Prime Minister Alexander Novak

Iran's oil industry has struggled for years under US sanctions imposed over Tehran's nuclear work.

"Of course, Iran has lived (under sanctions) for years, and we have discussed the Iranian experience," Novak told Russian state TV during his visit to Iran.

"Iran could become a key transportation and logistic hub for ensuring mutual transportation of goods," Novak said, adding that the annual goods turnover between Russia and Iran has potential to rise to 50 million tons in a few years from 15 million tons now.

Russian Deputy Prime Minister Alexander Novak attends the St. Petersburg International Economic Forum in June. (credit: EVGENIA NOVOZHENINA/REUTERS)Russian Deputy Prime Minister Alexander Novak attends the St. Petersburg International Economic Forum in June. (credit: EVGENIA NOVOZHENINA/REUTERS)

He said Russia may supply its energy to northern Iran, while at the same time Iranian oil and gas could be exported to Asia Pacific regions from the south. Novak said the agreements could be sealed in the near future.

The two countries also discussed investment in some oil and gas projects, Novak said.