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Russia, Iran can extend oil supplies agreement for 5 years

It was reported earlier that Iranian oil supplies under the program amount to 5 mln tonnes per year

MOSCOW, April 17. /TASS/. The Russian Energy Ministry is working with Iran on extension of the agreement on oil supplies to Russia under the oil-for-goods program for five years, Minister Alexander Novak told reporters on Tuesday.

"The first supply has already been completed, the next ones are arranged. The agreement is effective; it has been extended. We generally believe that it should be renewed for 5 years and work on this matter," Novak says.

Read also

Russia mulls payments for oil in national currencies with Turkey and Iran

It was reported earlier that Iranian oil supplies under the program amount to 5 mln tonnes per year. The first delivery was made in November 2017 and totaled 1 mln tonnes.

In May 2017, Iran and Russia reached an agreement to begin oil supplies under the oil-for-goods program established back in 2014, when the anti-Iranian sanctions were still in effect. The volume of the deal was agreed to stand at 100,000 barrels a day.

Earlier, Russia’s Minister of Energy Alexander Novak said that the oil-for-goods program was seen as a mechanism to boost trade between the two countries as proceeds from oil sales were meant to buy Russian-made commodity and services. According to Novak, Iranian oil would go for refining in those countries that buy such oil.

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