Russian energy giant Gazprom announced Wednesday that it signed a strategic agreement with the National Iranian Gas Company (NIGC) for carrying out procedures for the delivery of Russian gas to Iran.

Gazprom announced on Telegram that the memorandum was signed "as part of the visit of Gazprom's delegation headed by Management Committee chairman Alexey Miller to the Islamic Republic of Iran, in the presence of interim top Iranian executive official Mohammad Mokhber."

According to the corporation, the parties want to work together in the long run for mutual benefit.

During the visit, Miller and Iranian Petroleum Minister Javad Owji conducted a working discussion to discuss priority measures toward implementing the pact and additional areas of collaboration in the energy industry.

The visit marks Gazprom's second in 2024. Miller and Owji spoke about the opportunities for collaboration between Gazprom and the NIGC at the Russian Energy Week international gathering in Moscow last October and Gazprom has maintained a representative office in Iran since 2002.

Russia's Gazprom records first annual loss in 25 years

Last month, Gazprom reported its first annual loss in 25 years, attributed to decreasing gas exports amid pressure from Western sanctions over the war in Ukraine.

Gazprom Group recorded in 2023 a net loss for the first time since 1999, valued to be 629 billion rubles ($6.7 billion). This stands in stark contrast to its net profit of $13.2 billion in 2022.

The company saw its total revenue drop to $92 billion in 2023 from $126 billion in the prior year.

The report indicates that revenue from gas sales declined by 40% to $47.4 billion, while revenue generated from oil sales grew by 4% to $38 billion. Additionally, Gazprom's electricity grid sales improved by 6% to $6.6 billion.

Russian natural gas exports to its major European Union markets have significantly declined because of sanctions related to the conflict in Ukraine and the sabotage of the Nord Stream pipelines.

Gazprom's natural gas supplies to Europe fell by 55.6%percent to 28.3 billion cubic meters in 2023, Reuters reported earlier. This drop in exports is the largest since the early 1970s, according to estimates from the International Energy Agency.

Nevertheless, Gazprom has shifted its focus in energy trading to Asia, particularly China, which has become one of its primary purchasers. When the Power of Siberia pipelines operate at full capacity, the volume of Russian gas supplies to China could reach nearly 100 bcm annually. The company anticipates that once this occurs, China will completely replace the EU as a buyer of Russian gas.