Russia joins in $7.5bn worth of oil projects in Iran as two sides confronting Western sanctions

Russian contractors are currently involved in over $7.5 billion worth of petroleum projects in Iran, according to Iranian Oil Minister Mohsen Paknejad who says the two allied countries can further boost their cooperation on oil and gas projects.

News ID: 5806

Date: 18 January 2025 - 22:03

TABNAK, Jan 18: Speaking in a gathering of Russian businesses in Moscow late on Friday, Paknejad said that projects being carried out by Russian companies in Iran have made “considerable progress” in recent years.

“That has created an opportunity for Iranian and Russian companies to become active in the procurement and manufacturing of equipment,” he said.

The minister made the remarks after the presidents of Iran and Russia signed off on a strategic partnership treaty that outlines the roadmap for cooperation between the two countries for the next 20 years.

Under the agreement signed on Friday, Iran and Russia will work on long-term joint projects to expand their energy, nuclear, trade, and security cooperation.

Experts say the agreement will allow Iran and Russia to deepen their relationship in all areas of mutual interest, including in the oil and gas sector where the two countries have world-class capabilities.

Paknejad said that the increased contribution of the Iranian and Russian banking systems and financial sectors in oil and gas projects in the two countries could further boost joint investment in those projects.

He said many of the Russian companies currently working in the Iranian petroleum sector are responsible for procuring equipment.

He said Russian investors can also become active in the construction of refineries and petrochemical plants in Iran as well as in oil and gas field development projects in the country.