Russia and Iran are currently negotiating a swap agreement to exchange Russian gas for Iranian oil. At the first stage, 10 bcm of natural gas would be swapped for 5 Mt of gas oil. Deliveries could take place through the Caspian Sea and other countries, by rail and oil pipeline. Russia and Iran also plan to develop joint projects, including in the oil and gas sector. The deal is expected to be concluded by end-2022.
The two countries have sought to expand their cooperation since sanctions were placed on Russia following its decision to invade Ukraine. In September 2022, Iran agreed to purchase 3.3 bcm/year of gas from Russia through Azerbaijan. In July 2022, the National Iranian Oil Company (NIOC) and the Russian gas group Gazprom signed a memorandum of understanding worth US$40bn. Gazprom will help NIOC in the development of Kish and North Pars gas fields, pressure enhancement of South Pars field, development of 6 oil fields, gas and product swap, completion of LNG projects and construction of gas export pipelines.