Russian traders, analysts and industry players yesterday questioned Moscow’s announcement that a long-heralded oil-for-assets barter deal with Iran was already being implemented, saying they saw no signs of extra trade.
Russian officials said on Monday Russia was sending grain, equipment and construction materials to Iran in the barter deal, the first step in securing a foothold in a new market since the West imposed sanctions on Russia over Ukraine. Yesterday, the Kremlin confirmed the deal was being implemented.
The announcement and an accompanying one that Iran was ready to supply an advanced S-300 anti-missile system to Teheran, prompted alarm in Washington, which, along with other Western countries and the United Nations, has imposed sanctions on Iran over its disputed nuclear programme.
Politically sensitive negotiations are now in their final stages on a deal to end a decades-old dispute between Iran and the United States, Britain, France, Russia, China and Germany on the nuclear programme, which the West suspects has military aims and Tehran says is peaceful.
Russia has acted quickly to cement ties with Iran after an interim deal was reached this month on curbing the Islamic republic’s nuclear programme in exchange for removing economic sanctions. Talks will resume on April 21 with the aim of reaching a final accord by the end of June.
A precise mechanism and timetable for lifting sanctions against Iran is still to be worked out. Russia says an arms embargo on Teheran should also be lifted once the final nuclear deal is in place.
Russia has acted quickly to cement ties with Iran after an interim deal was reached this month
Yesterday, German Foreign Minister Frank-Walter Steinmeier said of the missile plan that it was too early to be giving out rewards.
Sources told Reuters more than a year ago a barter deal could be worth up to $20 billion and involve Russia buying up to 500,000 barrels of Iranian oil a day.
Officials have since issued contradictory statements on whether one had been signed.
Deputy Foreign Minister Sergei Ryabkov said on Monday Russia had started supplying grain, equipment and construction materials to Iran in exchange for crude oil, but Energy Minister Alexander Novak said Iran had not supplied oil.
“We are supplying our equipment, our works, we will complete work on power plant construction, a part of a railroad, and so on,” he was quoted as saying by RIA news agency.
Yesterday, the Kremlin spokesman declined to give any details of the deal.
But asked whether Ryabkov was correct, he told reporters: “Absolutely. Of course.”
Russia’s state grain trader United Grain Company has not supplied grain to Iran, a source at the company said about the barter deal. Oil traders said they had seen no sign of it.
“I think it’s just a political statement, I haven’t heard of any volumes to be shipped yet,” one trader said on condition of anonymity.
Another trader also called it a “political trick”. “People would have known about it ... One can’t conceal the fact of the supplies,” he said.
Traders said the oil taken from Iran could be sent on to other markets, such as India, shipped by Russian companies such as state-controlled energy firm Rosneft and therefore never have to be registered in Russia.