Russia is Ready to Import Iranian Oil Under Barter Deal

Starting next week, Iran might start exporting oil to Russia under a barter deal between the two countries. In exchange for oil, Russia promises to deliver grain, certain types of equipment and construction materials.

Iran hopes to start an "oil-for-goods" barter deal with Russia next week, Iran's Oil Minister Bijan Namdar Zanganeh said.

"We hope that next week they [the Russians] will start their first imports of oil," the Iranian Minister said after an OPEC meeting in Vienna. Zanganeh also said that Tehran needs to know how much oil Russia will need.

The Minister met with Russian Energy Minister Alexander Novak in Vienna earlier this week. As a result, Iran plans to buy "much lower than 500,000 barrels a day" in exchange for cash, which Tehran then will spend on Russian goods, Bloomberg reported.

Iranian oil exports decreased by 50 percent after international sanctions against the country were tightened in 2001 due to a dispute over Tehran's nuclear program. According to Russian Deputy Foreign Minister Sergei Ryabkov, neither the oil delivery from Iran nor goods out of Russia violate the existing sanctions regime against the Islamic Republic.