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Tehran rejects reports on barter deal with Moscow

10 December 2014 15:43 (UTC+04:00)
Tehran rejects reports on barter deal with Moscow

By Sara Rajabova

Iran’s oil minister rejected as baseless any report saying that Tehran and Moscow have reached an agreement to barter oil in return for staple goods.

Bijan Namdar Zanganeh’s statement came as Russian Economy Minister Alexei Ulyukayev was quoted as saying that Moscow plans to sign contracts with Iran to start delivering grain and industrial products to Tehran in return for oil.

“We did not sign any contract to do oil barter with Russia,” Zanganeh said, Mehr news agency reported on December 10.

During his visit to Tehran in late November, Ulyukayev expressed hope that a deal could be reached in this regard in the near future, adding that the central banks of Russia and Iran are working on ways to start making payments in the two countries’ national currencies. He noted that preparatory works have already begun.

Zanganeh said Iran and Russia, hit by western sanctions, will only cooperate in gas and oil industry. He added that Russian companies will provide Iran’s oil and gas industry with technical and operational support.

Right after Ulyukayev’s statement, the United States warned that it follows the negotiations between Russia and Iran onfurther expanding economic cooperation.

Jen Psaki, U.S. State Department Spokeswoman has recently said Washington will be ready to apply unilateral sanctions against Russia if such cooperation between Moscow and Tehran violates U.S.’s law, Russia’s TASS agency reported.

The U.S. and EU have imposed an array of embargoes on Russian individuals and businesses over the crisis in Ukraine. Iran also came under the West’s sanctions over its disputed nuclear activities, which Tehran assures is peaceful.

“We are aware of the talks between Russia and Iran, relating to various areas of the planned, future economic cooperation,’ Psaki said.

She noted that the U.S. government "will continue to monitor developments in these negotiations that involve future activities," adding that if these deals will be subject to sanctions, then Washington will act.

Early in August, Russia and Iran signed a Memorandums of Understanding for a period of five years, signaling a sharp intensification of economic cooperation between the two countries. The document lays the foundation for a comprehensive multi-billion dollar deal for trade in the oil sector between the two nations.

The two sides signed four MoU in last September for cooperation in oil and gas, petrochemical, industry and mine sector, including a MoU between Iran International Petrochemical Company and the Russian Gas Stroll to build a fertilizer plant.

It was previously reported that the two sides would discuss bartering goods for petrochemical products and chemical catalysts.

There are several laws in the U.S. that are aimed at ensuring the actual economic blockade of Iran.States seeking to develop trade and economic ties with Iran have been threatened with various US punitive measures.It is an extraterritorial application of domestic U.S. law. Russia has repeatedly advocated strongly against such practices.It is an extraterritorial application of domestic U.S. law. Russia has repeatedly advocated strongly against such practices.

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