Russian Energy Minister Believes 'Oil-for-Goods' Program Beneficial For Moscow, Tehran

Russia and Iran continue to cooperate under the so-called oil-for-goods program as they have noticed positive effects coming out of its implementation, Russian Energy Minister Alexander Novak said on Tuesday

MOSCOW (UrduPoint News / Sputnik - 18th June, 2019) Russia and Iran continue to cooperate under the so-called oil-for-goods program as they have noticed positive effects coming out of its implementation, Russian Energy Minister Alexander Novak said on Tuesday.

On the eve of a Tuesday meeting of the Russian-Iranian intergovernmental commission, Novak met with Iranian Oil Minister Bijan Zangeneh to discuss cooperation in major investment projects, including in the fuel and energy sector, as well as joint work being done under the oil production curtailment agreement of the Organization of the Petroleum Exporting Countries and non-cartel producers.

"We also discussed the implementation of the oil-for-goods memorandum .

.. This program is promising in terms of increasing trade between our countries," Novak said in an interview with the Rossiya 24 broadcaster.

After several years of informal and formal talks on the exchange program, Russia and Iran signed a corresponding memorandum in August 2014. Tehran pledged to spend half of its revenue from oil exports to Russia on Russian goods and services and made its first oil shipment under the program in November 2017.

In October 2018, Novak said that Russia would continue the oil-for-goods program regardless of the US sanctions on the Islamic republic. The volume of Iranian oil exports set by the agreement totals 5 million tonnes per year.