Iran to ink $4 billion oilfields deal with Russia

Iran is set to sign a $4 billion energy agreement with Russian companies to jointly develop seven oilfields, Oil Minister Mohsen Paknejad announced on state television on Friday.

The deal marks a significant step in Tehran and Moscow’s efforts to enhance cooperation across multiple sectors as both face mounting Western sanctions.

“The deal aims to develop seven Iranian oilfields in cooperation with Russian firms,” Paknejad said, underscoring the growing energy alliance between the two countries.

Since the outbreak of the war in Ukraine, Iran and Russia have increasingly aligned, strengthening cooperation in areas such as defence, banking, agriculture and energy, reports Al Jazeera.

In January, the two countries formalised their partnership by signing a strategic treaty aimed at deepening bilateral relations.

Friday’s agreement is viewed as part of a broader push to dismantle existing barriers in their collaboration. It also comes at a time when Iran is seeking renewed momentum in nuclear negotiations with the United States, set to resume in Oman on Saturday.

Tehran recently held consultations with key allies Moscow and Beijing ahead of the talks.

Paknejad met Russian Deputy Prime Minister Alexander Novak on Thursday, who serves as President Vladimir Putin’s liaison with the Organisation of the Petroleum Exporting Countries (OPEC).

The meeting took place amid growing tensions within OPEC+—the bloc of OPEC members and allied producers led by Russia—over proposals to raise oil production for a second straight month in June.

This push for increased output highlights internal disputes over quota compliance and coincides with renewed US pressure to curb Iranian oil exports, reports UNB.