Barter Trade may start between Russia and Iran

Tehran: The United States and European countries have imposed tough economic and trade sanctions on Russia since the Ukraine conflict. This has made it difficult for other countries to trade with Russia. In such a scenario, India had offered Russia to trade in barter. Russia is considering this. Iran is also planning a barter trade with Russia. Iran has offered to supply car parts and gas turbines in exchange for steel from Russia. The Minister of Trade of Iran, Reza Fatemi Amin, gave this information.

A joint trade and economic cooperation meeting between the leaders of Iran and Russia was held in the capital Tehran two days ago. In this regard, Iran demanded industrial steel from Russia. Iran also announced importing raw materials from Russia for use in the metal and mining sector through barter. This will include imports of Zinc, Lead and Aluminium. ‘The demand for these metals is increasing in Iran’s industrial sector and Iran has no other option but Russia,’ Trade Minister Amin told the state news agency.

In return, Iran is willing to supply Russia with car parts and gas turbines of the same cost as the metals. Successful discussions on barter trade took place between Iran and Russia. However, it was not immediately clear if Russia was ready to accept the offer. Trade Minister Amin further said that some Iranian private companies have entered into agreements to repair or replace gas turbines in Russian power projects. Russia’s Deputy Prime Minister Alexander Novak was present to discuss the trade.

On the occasion of this meeting, Iran signed three agreements on fuel cooperation with Russia. This includes joint ventures in the natural gas and fuel sector. Iran will also provide petrochemical and technological assistance to Russia, said Owji, the Fuel Minister of Iran. The leaders of Iran and Russia also discussed ways to increase the use of local currency. Iranian leaders say Iran’s trade with Russia is expected to increase soon. Iran’s Fuel Minister Javad Owji has claimed that economic cooperation between the two countries will reach $40 billion following the meeting between Deputy Prime Minister Novak and Trade Minister Amin.

Meanwhile, Russia and Iran could deal with US sanctions better if the trade continues in this way. Russia has made aggressive decisions to omit US dollars from its international trade. Russia is trading with China and some other countries, omitting the dollar. As a result, Russia’s influence is growing and the importance of the US dollar is decreasing.

Leading economist at the International Monetary Fund has said Russia had boomeranged the attempt of the United States to use the dollar as a weapon against Russia by imposing sanctions.