Moscow, Tehran agree on 55 bcm of Russian gas, funding nuclear plant
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Russia and Iran have agreed on strengthening energy cooperation by signing deals amid US sanctions and global tensions.
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This photo shows a general view of a petrochemical complex in the South Pars gas field in Asalouyeh, Iran, on the northern coast of the Gulf, Thursday, November 19, 2015 (AP)
Moscow and Tehran have reached a preliminary agreement for the annual supply of 55 billion cubic metres (bcm) of Russian gas to Iran, with pricing yet to be finalized. Russia also pledged to finance the construction of a new nuclear power plant in Iran, officials announced on Friday.
These agreements come as the United States seeks to isolate Iran unless it agrees to a new nuclear deal. Russia has deepened its relationship with Iran since the start of the war in Ukraine, with both nations facing heavy Western sanctions.
Moscow and Tehran signed a strategic partnership treaty in January.
It is worth noting that at a plenary session, the Federation Council ratified on April 16 a law formalizing a comprehensive strategic partnership treaty between Russia and Iran. It designates Russia and Iran as strategic partners and encompasses collaboration in defense, counterterrorism, energy, finance, transport, industry, agriculture, culture, science, and technology.
Energy cooperation expands
Russia, which previously helped build Iran’s first nuclear reactor at Bushehr, will now support the construction of a second plant. Iranian Oil Minister Mohsen Paknejad, currently visiting Moscow, met with Russian Energy Minister Sergei Tsivilev to finalize details.
Shana News Agency reported that the two countries agreed on the 55 bcm gas deal and that the nuclear project would be financed via a Russian credit line. Despite holding the world's second-largest gas reserves, Iran imports gas due to under-investment and US sanctions.
Tsivilev noted that Russia may supply 1.8 bcm of gas to Iran this year, with volumes potentially increasing to 55 bcm annually, comparable to the Nord Stream 1 pipeline's former capacity.
Oilfield, gas hub developments
Paknejad also announced a forthcoming $4 billion agreement with Russian firms to develop seven Iranian oilfields. Additionally, Russia and Iran will advance plans for a regional gas hub, possibly involving Qatar and Turkmenistan, as part of broader cooperation with Gazprom.
On Thursday, Paknejad met with Russian Deputy Prime Minister Alexander Novak to discuss OPEC+ strategies. He emphasized ongoing uncertainties in the global oil market, including the impact of US-imposed tariffs under President Donald Trump.
Paknejad confirmed that OPEC+ will meet in early May to decide on production policies aimed at ensuring market stability, amid Trump’s calls for lower oil prices as part of his "maximum pressure" campaign against Iran.
