Iran and Russia are negotiating a power deal worth up to $10 billion in the face of increasing US financial alienation. The construction of new thermal and hydroelectric plants and a transmission network are in the works.
Iran’s Energy Minister Hamid Chitchian met his Russian
counterpart Aleksandr Novak in Tehran on Sunday in order to
discuss the potential power deals, according to Iran’s Mehr news
agency.
“[Expansion of] Iran-Russia relations are not only to the
benefit of the two nations, but also are beneficial to entire
region,” Iranian President, Hassan Rouhani, stated in a
meeting with Novak in Tehran on Sunday, reported Iran’s FARS news
agency.
Plans include the construction of hydroelectric and thermal
generating plants and a new transmission network. The possibility
of Russia exporting 500 megawatts of electricity to Iran is also
on the cards, said Mehr.
The strengthening of economic ties between the two countries is
of heightened significance given both economic sanctions on Iran,
imposed with the aim of encouraging Iran to cut its uranium
stockpiles, and new economic sanctions on Russian officials
imposed on Monday.
On Sunday, Chitchian reportedly stressed “the need for
further expansion of economic ties between Tehran and Moscow,
particularly in the energy and commerce spheres,” stated
Mehr.
Moscow has additionally been discussing the trade of 500,000
barrels a day of Iranian oil for Russian goods with Tehran. The
protracted deal, first reported at the beginning of April could
be worth as much as $20 billion, and has rattled Washington
because it could bring Iran's crude exports above one million
barrels a day - the threshold agreed upon in the nuclear deal
between the P5+1 powers - US, Britain, France, China, Russia and
Germany – and Iran.
Moscow and Tehran are far from finalizing the contract, according
to Russian business daily Kommersant, which first broke the news.
Nonetheless, the Obama administration has expressed distaste at
the reports.
Tehran’s ambassador to Moscow Mehdi Sanaei said on Friday that
the implementation of Iran-Russia energy agreements hold the key
to economic expansion.
Sanaei underlined the importance of promoting of Iran-Russia
cooperation and called for the implementation of oil, gas and
electricity deals, according to Press TV.
Russia-Iran trade is currently worth $5 billion a year, but
economists say the two countries can at least quadruple the
volume of trade.
Earlier this month, Iranian Oil Minister Bijan Namdar Zanganeh said the Islamic Republic is determined to raise the volume of its “economic transactions” with Russia.