Iran Signs Strategic Gas Transfer Deal with Russia

Iran’s Acting President Mohammad Mokhber has expressed Tehran’s satisfaction with a newly signed deal for the transfer of Russian gas to Iran.

On June 26, Russia’s energy giant Gazprom and the National Iranian Gas Company (NIGC) signed a Memorandum of Understanding (MoU) for the transfer of Russian gas to Iran. The agreement will enable Iran to import gas from Russia and supply it at a higher price to Iraq, Türkiye, and Pakistan.

During a telephone call with Russian President Vladimir Putin on June 26, Mokhber thanked his counterpart for his efforts in implementing the agreement, which he described as a “major step towards strengthening relations between the two countries,” according to the Iranian presidential website. Mokhber further stated that the agreement serves the economic interests not only of the two countries but also of “the entire region.”

In response, Putin described the increase in the level of commercial exchanges between the two countries as “satisfactory.” The Russian president also “wished the people of Iran success in the upcoming presidential election, emphasizing his confidence that Russian-Iranian friendly relations will continue to develop progressively.”

The two leaders discussed further mutually beneficial bilateral cooperation across all key areas, with “special satisfaction” expressed over the successful progress in energy sector cooperation and the implementation of large-scale infrastructure projects.

According to the Iranian acting president, this MoU is “extremely important” for both countries and the region.

“The Islamic Republic of Iran will become a regional gas hub, opening a new chapter in regional and international relations,” Mokhber stated during a meeting with Gazprom CEO Alexey Miller prior to the signing of the gas transfer agreement.

Earlier this year, Iran’s Oil Minister Javad Owji mentioned ongoing negotiations with Russia, Turkmenistan, and Oman to establish a gas hub in Asaluyeh on the Gulf coast.

Russia and Iran jointly account for more than 40% of global gas reserves. Russia has faced an oversupply of natural gas since early 2022 due to sanctions affecting its exports to Europe following the war in Ukraine. Iran, the world’s third-largest gas producer after Russia, also exports gas via pipelines to Türkiye and Iraq.