Russia will supply Iran with 1.8 billion cubic meters of gas in 2025 at a price to be agreed

The two countries announced on Friday that Russia could supply Iran with 1.8 billion cubic meters (bcm), of natural gas, this year. A price has not yet been agreed.

On a trip to Moscow, Iranian Oil Minister Mohsen Pknejad said that the deal was not finalized but both countries were working hard to close it as quickly as possible.

In a January meeting with Masoud Pezeshkian, the Iranian counterpart, Russian President Vladimir Putin said that Russia could eventually provide up to 55 billion cubic meters (bcms) of gas to Iran per year, starting at lower volumes up to 2 bcms.

Paknejad said that there are many uncertainties in the oil market around the world, including the impact of tariffs wars. In April, U.S. president Donald Trump announced steep tariffs against most countries in the world. This shook consumer and business confidence and led to a rapid sale of U.S. assets.

Paknejad stated that the Organization of Petroleum Exporting Countries and its allies, led by Russia (a group known as OPEC+), would make decisions to ensure the stability of the market. He did not go into detail about what this might mean.

Three sources familiar with OPEC+ discussions have reported that several members of OPEC+ suggested that the group increase oil production in June by a significant amount for a second month running. OPEC+ is expected to meet in early May and decide its policy. (Reporting and writing by Olesya Astakhova; editing by Mark Trevelyan).

(source: Reuters)