Moscow and Tehran: A New Era of Energy Cooperation

Russia and Iran have agreed on a substantial Russian gas supply deal and Russian funding for a nuclear plant in Iran. This is part of strengthened ties between the countries, despite U.S. efforts to isolate Iran. Both face Western sanctions, impacting their respective energy sectors.

In a landmark deal, Moscow and Tehran have agreed upon a preliminary agreement for the delivery of 55 billion cubic metres of Russian gas annually to Iran, although pricing details remain unsettled. Additionally, Russia has committed to funding the construction of a new nuclear power plant in Iran, as stated by officials on Friday.

This strategic partnership underscores the deepening ties between the two nations, both facing Western sanctions and sharing historical cooperation. With Russia's oil and gas exports to Europe severely reduced, this agreement reflects growing collaboration amid the ongoing conflict in Ukraine.

Iran's Oil Minister Mohsen Paknejad, after meeting Russian Energy Minister Sergei Tsivilev, confirmed the gas agreement and financial backing for the nuclear plant. Iran, the holder of the world's second-largest gas reserves, imports gas due to underinvestment caused partly by U.S. sanctions. Russian gas giant Gazprom is poised to aid Iran in regional gas distribution, potentially involving other nations like Qatar and Turkmenistan.

(With inputs from agencies.)