|Russia’s President Vladimir Putin shakes hands with his Iranian counterpart Hassan Rowhani.|
It's Getting Embarrassing
Putin is running rings around Obama and gaining influence with Iran, Egypt, Syria and Iraq at the same time.
Vladimir Putin has agreed a $20bn (£11.8bn) trade deal with Iran that will see Russia sidestep Western sanctions on its energy sector.
Under the terms of a five-year accord, Russia will help Iran organize oil sales as well as “cooperate in the oil-gas industry, construction of power plants, grids, supply of machinery, consumer goods and agriculture products”, according to a statement by the Energy Ministry in Moscow.
The Russian government issued a new statement on Wednesday after mysteriously withdrawing a similar release on Tuesday reports the Telegraph.
Russian Energy Minister Alexander Novak said on Wednesday that his government will help Iran bring its oil to market. In return, Iran wants to imort power and pump equipment, steel products such as pipes, machinery for its leather and textile industries, wood, wheat, pulses, oilseeds and meat.
Iran "is also interested in the joint construction of power generation and development of coal deposits", Mr Novak added.
Further talks between the two countries will take place next month, he said.
A deal could see Russia buying 500,000 barrels of Iranian oil a day, the Moscow-based Kommersant newspaper has previously reported. That would be about a fifth of Iran’s output in June and half its exports.
There’s a question over “how substantive this memorandum is”, Richard Mallinson, an analyst at Energy Aspects in London, told Bloomberg. “There would be various practical limitations in terms of Iran’s current production capacity, geography and shipping logistics, as well as US sanctions.”
The move is a win-win for both nations after they were hit with Western sanctions aimed at limiting their energy sectors.