The Forum for Partners in Iran's Marketplace

October 2018, No. 89

Oil & Gas


Russia’s $50 Billion Investment in
Iran’s Oil & Gas Industry

Mr. Putin voiced readiness to invest in other parts of our country’s railways and emphasized on the North-South Corridor, St. Petersburg-Chabahar project.

Ali Akbar Velayati, the special envoy of the Islamic Republic of Iran, visited Russia (July) in line with continued consultations to find practical responses to the anti-Iranian efforts of the United States. Consultations that seek to safeguard the Joint Comprehensive Plan of Action and serve Iran’s economic interests in the context of the JCPOA. Velayati, who headed a delegation to Moscow, carried important messages from the Supreme Leader and President Hassan Rouhani to the Russian president. In addition to Iran’s Nuclear Deal (JCPOA), Velayati exchanged views with President Vladimir Putin on bilateral political and economic relations, as well as the latest regional developments.

Concurrent with Velayati’s Moscow visit US officials, including President Donald Trump, and Secretary of State for Foreign Affairs Mike Pompeo, met with officials from around the world in compliance with their efforts to increase pressure on Iran. Trump attended a NATO Summit and succeeded in inserting his repeated claim about Iran’s missile program in the final statement of the regional European alliance. Meanwhile, Pompeo launched a tour of the Middle East and tried to coordinate the Persian Gulf states in their anti-Iran quest.

Under such circumstances, and while underlining expansion of relations with Russia Velayati met with Putin who said Moscow was ready to make a $50 billion investment in Iran’s oil & gas industries. 

Russia to Replace Western Companies on Oil Cooperation: Velayati who serves as the international advisor of Ayatollah Khamenei, submitted the messages of IRI Leader and President to Putin in a meeting he described as “constructive and sincere”. He also pointed to important bilateral understandings on the strengthening of relations. Speaking in an interview later, Velayati announced the readiness of the Russian president to increase the investment ceiling in Iran’s oil and gas industry to $50 billion. In the oil field, he said, one of the major oil companies of Russia has signed a contract with the IRI Oil Ministry for $4 billion, which will soon be executed.

The announcement of Moscow’s readiness to invest $50 billion was made by Velayati while Kremlin spokesman Dmitry Peskov said he could neither confirm the report nor was ready to provide further details.

On Tehran-Moscow oil cooperation, Velayati noted: “Two important Russian oil companies, Rosneft and Gazpromneft have started negotiations with Iran’s Oil Ministry. The amount of contracts with these two companies could increase up to $10 billion.”

He added: “Mr. Putin’s announcement in the meeting on $50 billion investment in Iran’s oil and gas industries shows his emphasis on expansion of oil cooperation with Iran. The figure is quite high and Russia can take the place of the Western companies which left Iran.”

Pointing to Iran-Russia nuclear cooperation, he noted: “In this area, we have established a thousand-megawatt reactor with the help of the Russians, which now generates electricity and is important with regard to the current problems in the field of electricity.”
“Two other nuclear reactors are being built in our country, which Mr. Putin was aware of its details,” Velayati said, adding that these reactors could generate electricity and their steam could be used for water desalination in Iran’s southern coasts. “By transferring the technology we expect from the Russians, in a near future, the Atomic Energy Organization of Iran (AEOI) can set up these small reactors across southern shores and use them to offset water shortage,” he added. 

Cooperation for Railway Development: Velayati said cooperation on development of the railway was among other topics he had discussed with Putin. “Another topic Mr. Putin placed emphasis on and was pleased with was cooperation on development of Iran’s railways. Over the past 10 days, preparations were made for the construction of the Inche Borun-Garmsar railway in Sari (northern Iran).”
He added: “Mr. Putin also voiced readiness to invest in other parts of our country’s railways and emphasized on the North-South Corridor, St. Petersburg-Chabahar project. That is, the said line can transfer goods from South and Southeast Asia via Iran and save 40% in costs and 40% in time.”


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  October 2018
No. 89