Russia has started shipping grain to Iran under a barter deal that will sea the grain being exchanged for other goods from Iran as the two nations bolster cooperation in response to sanctions from the West.
The announcement was made by Rosselkhoznadzor, Russia’s food safety watchdog, Dow Jones Business News reports.
This announcement builds upon a deal reached between Moscow and Iran on delivering crude oil in exchange for grain cargo dating back from 2014.
This year Russia plans to supply Iran with around 1.5 million metric tons of grain, including wheat, barley and corn, Rosselkhoznadzor said.
Iran will in turn supply Russia with commodities and durable goods including machinery and construction materials, according to the announcement.
Russia has dispatched the first 100,000 tons a few days ago, Russia’s state-run news agency RIA quoted Alexei Alexeyenko, deputy head of Rosselkhoznadzor, as saying.
Discussions are underway between the two countries on expanding the barter deal that would include the energy sector, according to Russia’s Energy Ministry.
However, the Ministry said it was too early to talk about Russia starting to import oil from Iran as part of an oil-for-goods barter deal, Reuters reports.
World Maritime News Staff