Russia, Iran Mull Contracts on Bilateral Oil, Gas Swaps

Russian delegation headed by Russian Energy Minister Alexander Novak arrived in the Iranian capital of Tehran to discuss bilateral cooperation in the oil sector, as well as the issues of power plant construction and electricity transition and distribution.

MOSCOW (Sputnik) — Iranian Oil Minister Bijan Namdar Zanganeh has discussed oil and gas swaps with Russian Energy Minister Alexander Novak, local media reported Thursday.

On Wednesday, a Russian delegation headed by Novak arrived in the Iranian capital of Tehran to discuss bilateral cooperation in the oil sector, as well as the issues of power plant construction and electricity transition and distribution.

"The last thing we talked about was cooperation in swapping oil, gas, crude, and other hydrocarbon products," Zanganeh said on Wednesday, as quoted by Iranian Mehr news agency.

Under the plan, Iran will receive Russian oil and gas through its northern terminals on the Caspian Sea and will sell its oil to Russian clients from its southern terminals. A similar mechanism of oil swaps is used by Iran in its bilateral trade with other Caspian states, including Azerbaijan, Kazakhstan and Turkmenistan.

During the visit, Moscow and Tehran signed a number of agreements. Novak said that the deals are worth a combined total of up to $40 billion.