Russia, Iran negotiating for barter deal worth $1.5 bn every month

Update: 2014-01-12 22:46 GMT
Russian and Iranian sources close to the barter negotiations said final details were in discussion for a deal under which Russia would buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods.

‘Good progress is being made at the moment with strong chances of success,’ said a Russian source. ‘We are discussing the details, and the date of signing a deal depends on those details.’ The Kremlin declined comment.

‘Our desire is to sign the deal as soon as possible,’ said a senior Iranian official, who declined to be named. ‘Our officials are discussing the matter with the Russians and hopefully it will be inked soon, regardless of whether we can reach a (nuclear) agreement in Geneva.’

It is not clear whether the deal would be implemented before the finalization of a nuclear agreement outlined in Geneva in November between Iran and six world powers.

Nor is it clear how Russia would justify to other powers a barter deal that could jeopardise the nuclear negotiations by easing the economic pressure on Iran.

‘It depends on whether the Russians agree to implement this deal before there is a final resolution of the nuclear issues. That would obviously be a very negative signal,’ said Gary Samore, former nuclear non-proliferation czar for President Barack Obama and now an academic and president of pro-sanctions group United Against Nuclear Iran.

‘It could very well be they just want to have this ready to go the day after a nuclear deal is completed and they would then be prepared to execute a barter arrangement.’

US Representative Eliot Engel, the top Democrat on the House Foreign Affairs Committee, said he was deeply troubled by the report of the Iran-Russia talks. ‘This reckless and irresponsible move raises serious questions about Russia’s commitment to ending Iran’s pursuit of nuclear weapons,’ Engel said in a release.

Russia is one of the countries involved in the nuclear talks but, unlike the US and the EU, has not imposed sanctions on Iran.

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