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Russia, Iran team up in new trade, investment deals

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AFP Tehran
Last Updated : Sep 10 2014 | 10:06 PM IST
Russia and Iran, both targeted by international sanctions squeezing their economies, set the stage today for a strategic partnership aimed at vastly expanding trade and investment.
The two countries signed a number of protocols intended to increase bilateral trade tenfold in the next two years from the current figure of $1.5 billion (1.2 billion euros).
At the same time, Russian Energy Minister Alexander Novak said the two countries would also pursue investment projects worth 70 billion euros.
Iranian Oil Minister Bijan Zanganeh, who had welcomed yesterday a sizeable Russian delegation, said "there is no restriction on developing trade relations" between the two sides.
Iran has long been under an array of EU, US and UN sanctions over its disputed nuclear energy programme.
Western powers suspect Tehran has sought to develop nuclear weapons, a claim it strongly denies, and negotiations are now underway to reach a deal acceptable to both sides.

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Russia, meanwhile, has recently been slapped with EU and US sanctions over its perceived support for separatists in Ukraine.
Consequently, both countries are looking for new economic partnerships.
One example is food.
"Before the sanctions, we imported certain products from the European Union, and now we can import them from Iran," Novak said.
Under one deal, Iran will buy 10 million tonnes of wheat, while exporting dairy products, fruit and vegetables to Russia.
Tehran also aims to triple from $600 million its sales to Russia of chicken, meat and eggs, as well as shrimp.
But the two sides denied they had agreed to barter oil for food, after Russian media reported that talks were underway for Moscow to import 70,000 barrels per day of Iranian crude at a preferential price in exchange for agricultural products.
Iran is rich in oil, but has long sought to diversify its energy sources, and its drive for nuclear power has complicated relations with the West.
Tehran is now negotiating with Germany and the five permanent UN Security Council members, among which is Russia, to reach a final deal on its nuclear programme.

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First Published: Sep 10 2014 | 10:06 PM IST

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