Recent Posts and Categories

Bypassing Sanctions and US Dollar Trade | Russia and Iran agree on Oil-for-Goods

OWoN: When you read this the depth of Russian thinking becomes clear. Forget the western sanctions and US sabre rattling, Russia has moved on and is charting its own course while seeing clearly the enemy for what it is.

While Obama wonders and moans about Putin ignoring his calls, one can only imagine that Russia has decided that dialogue is no longer worth the effort or the time. This is a bad omen as clearly the moves being made are on the basis that no dialogue will come to consensus that is worthy of consideration. And never before has a relationship between superpowers fallen so low. 

With no respect for the Cabal and Zionist ship of fools running America, the world has become a more dangerous place and now the concept of a Russia adopting a first strike posture should give the whole world a pause to think hard! Especially since this is the US attitude towards Russia and China. If either or both of them conclude that war is required to have peace they will act to protect themselves and their assets at a cost perhaps of life itself. And this is the result of foolish policy. What a madhouse of mad dogs and loose cannons running America so badly!

The world is moving on. The US is now a Naked Emperor subjected to ridicule and dissent.

President Hassan Rouhani of Iran meeting with Russian President Vladimir Putin

Russia-Iran Oil-for-Goods Contracts

Gold Core
By Mark O'Byrne
10 September 2014

Representatives of the Russian and Iranian governments met in Tehran yesterday for the 11th meeting of the Iran-Russian Trade Council, where details of a ground breaking oil-for-goods swap between the two heavily sanctioned countries were revealed.

With both countries now sanctioned by the West, Russia and Iran have been in extensive negotiations on how to facilitate Iranian oil exports without breaching the UN Security Council nuclear deal that was agreed between Iran, Germany and the five UN Council permanent last January.

Sanctions on Iran had reduced Iranian oil production from 2.5 million barrels per day (BPD) down to between 1 million - 1.5 million BPD. Under the UN’s nuclear deal, Iran can only now export up to 1 million BPD. Iran has the world’s 4th largest oil reserves and both Russia and Iran are large producers and exporters of oil.

On August 5, Russia and Iran signed a Memorandum of Understanding (MoU) on oil-for-goods exchanges under which Russia could take 500,000 BPD of Iranian oil exports in returns for providing goods, services and equipment to Iran. This deal was said by Russian media to have been directly negotiated previously by Russian President Vladimir Putin and Iranian President Hassan Rouhani.

Yesterday in Tehran, details of one of these oil-for-goods deals became apparent, when an oil-for-power-plants was announced as part of a wide ranging economic cooperation agreement that was signed between the two parties. The trade agreement is said to be worth up to €70 billion.

According to the Russian news agency ITAR-TASS, the power plants deal will consist of Russian energy engineering company TECHNOPROMEXPORT providing services for the construction of seven thermal power plants by 2017 in return for oil supplies to Russia. TECHNOPROMEXPORT had already negotiated their deal with Iran earlier this summer. It was only the payment terms that had not been revealed.

According to the Iranian Fars news agency, current Iran-Russia trade was worth $5.1 billion in 2013, and the new wide-ranging Russian projects will include construction and renovation of Iranian power plants and power grids, as well as other transportation and aviation projects such as possibly relocating the production and assembly of Aviastar-SP Tuplolev TU-204 passenger aircraft to Iran.

Russian energy minister Alexander Novak, who attended the talks and signed an agreement with Iranian oil minister Bijan Namdar Zanganeh, said that “Iran and Russia had intensively worked to remove obstacles such as method of payment for trade exchanges”.

Russian Energy Minister, Alexander Novak

ITAR-TASS said that one of the existing impediments to the supply of Iranian oil to Russia has been “problems in organising interbank settlements”.

It was also revealed yesterday that TECHNOPROMEXPORT will be involved in the construction of electric power plants in Iran along with Inter RAO. In fact, yesterday a number of MoUs were signed between the two countries in the areas of oil and gas, petrochemical, mining and other industries.

Although the 500,000 BPD of Iranian oil exports to Russia does not breach the UN limit, it will be seen by the White House as a threat to the US led sanctions. With further sanctions of its own, Russia now appears to be beginning to move its own chess pieces.

Last month the Russian business daily newspaper Kommersant quoted Russian policy expert Andrey Baklitsky as saying “Russia, at present, is far less disposed to heed US recommendations”. Baklitsky thought that with sanctions on its own oil industry, Russian is less worried about violating Iranian oil sanctions.

Russia doesn’t necessarily need Iranian oil imports and these could easily be re-exported to other countries including China. Iran is China’s third largest supplier of crude oil.

On Monday at a separate press conference at the oil ministry in Tehran, Fars news agency quoted deputy oil minister Mansour Moazzemi as saying that “Russia is Iran’s strategic partner and we will cooperate with them in any area we can, including oil.”

Moazzemi also said that “We have started a serious job with the Chinese and Russians (in the energy sector) in such a strong way that the oil minister has now been appointed as the head of Iran-Russia joint economic commission instead of the foreign minister.”

Moazzemi then elaborated “We have also started a serious job with the Chinese which will be revealed to the public in the future.”

As the world powers square up over sanctions and energy reserves, while using oil-for-goods deals to bypass US dollar settlement for oil transactions, the geo-political ramifications for the status of the US dollar as the world’s reserve currency look to be on increasingly shaky ground.

A breaking of the stranglehold of the dollar on international oil transactions could usher in a number of transaction substitutes such as the Euro, the Yuan, and also the international currency of gold.



  1. Russia has decided that dialogue is no longer worth the effort or the time. This is a bad omen as clearly the moves being made are on the basis that no dialogue will come to consensus that is worthy of consideration

    Exactly as written above.....dialogue over PP's reached long ago a point when there should have been no more calls across the big pond.....ignore them, create an alternative route and soon those snake will begin crawling and begging for attention......

    But I feel tired saying the same thing over and more phone calls across the big pond....and things will begin changing .....

    Read more at:
    OWoN © All Rights Reserved

  2. People are moving past the "thuggery", and moving into the future...cooperation is required and we don't necessarily need money.

    I might have a skill/product/or service that you need, and you might have something that I need...let's barter; we can bypass a system that has been hijacked by thugs who believe that there is no other way? Money is not the only medium of as it stands right now in UsA have no real value,,,it's paper, backed by nothing...we'll be producing real value in exchange for real value...and the world still revolves...and we evolve.

    People are the ones who make the dollar worth something...if we change our medium of exchange...say, I am a grocer and I have products that you need a job and I can exchange the value of your services for groceries...and the beat goes on!


If your comment violates OWON's Terms of Service or has in the past, then it will NOT be published.

Powered by Blogger.