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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRussia, Iran Defy U.S.’s Kerry With Their Oil-for-Goods Accord
(Wondered if Iran and Russia could then sell to China bypassing the Sanctions on both countries? That would give lots of people in the PTB a hissy fit. Didn't see this as big news today on Bloomberg Morning News as the Stock Market tanked for another day. Although Googling this shows up in their Print News to a DU'er who posted this before...I couldn't find the post.)
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http://www.bloomberg.com/news/print/2014-08-05/russia-iran-defy-u-s-s-kerry-with-their-oil-for-goods-accord.html
By Elena Mazneva and Grant Smith 2014-08-05T17:23:09Z
Russia signed an accord that may turn it into the largest importer of oil from Iran, also isolated by international sanctions, in defiance of U.S. threats.
The two countries signed a five-year memorandum of understanding to expand trade cooperation, the Russian Energy Ministry said today in an e-mailed statement. Russia will help organize Iranian oil sales under the agreement including in Russia, as suggested by the Persian Gulf state, the ministry said in a later statement, without elaborating.
The U.S. and European Union are ratcheting up pressure on Russian President Vladimir Putin over his backing for Ukrainian rebels by boosting sanctions against individuals and companies deemed close to his administration. The U.S. is concerned about reports of a Russia-Iran oil deal and such an accord could lead to retaliation, U.S. Secretary of State John Kerry said in April.
The accord covers cooperation in oil and gas, construction of power plants and grids, supply of machinery, consumer goods and agriculture products, according to the ministrys statement.
Theres a question how substantive this memorandum is, Richard Mallinson, an analyst at Energy Aspects Ltd. in London, said by e-mail. There would be various practical limitations in terms of Irans current production capacity, geography and shipping logistics, as well as U.S. sanctions.
500,000 Barrels
Russia may buy as many as 500,000 barrels of Iranian oil a day in return for goods, the Moscow-based Kommersant newspaper said in January, citing unidentified government officials. Thats about a fifth of Irans output in June and half of its exports, according to the International Energy Agency.
The U.S. Congress passed legislation in 2011 to deprive the Islamic state of its largest foreign-revenue earner and pressure leaders to accept constraints on a suspected nuclear weapons program by curtailing Iranian oil exports. The EU also approved an embargo on Iranian oil purchases by its members.
Russia complies with the United Nations, Finance Minister Anton Siluanov said in April. Our U.S. partners have their own legislation that differs somewhat from the provisions set by the UN and theyre monitoring their own rules, Siluanov said.
Planned cooperation with Iran doesnt violate Russias international obligations and is important given the current foreign economic realities, Energy Minister Alexander Novak said today in the later statement.
KoKo
(84,711 posts)my speculation is incorrect or wants to add new thoughts.