13 Apr 2023; MEMO: Russia has delivered its first fuel exports to Iran by rail, according to a report by Reuters citing three industry sources. It comes as both countries look to strengthen relations in an effort to bypass Western sanctions.
Iran received 30,000 tonnes of diesel and gasoline from Russia in February and March by rail via Kazakhstan and Turkmenistan, two of the sources said. While a third source confirmed the shipment but was unable to specify the volume of the sale. The report also noted that some gasoline deliveries entered Iran by track from neighbouring Iraq.
"We expect fuel supplies to Iran to rise this year, but we already see several issues with logistics due to rail congestion. That may keep exports from booming," one of the sources was quoted as saying.
In October last year, Russian Deputy Prime Minister Alexander Novak said that Moscow and Iran had reached an agreement to swap oil and natural gas supplies worth $40 billion. Since then, the two countries have been negotiating the deal's routes and technical details.
Moscow has previously supplied the Islamic Republic with small volumes of fuel by oil tanker across the Caspian Sea, despite the country being an oil producer itself it has recently faced fuel shortages. However, rising freight costs and a price cap imposed by G7 nations on Russian seaborne crude have forced the country to resort to rail transport for oil exports as an alternative.
Al-Mayadeen reports that as poor train connections may be a barrier to future development, the two countries are now looking into possible infrastructure improvements to assist in enhanced economic cooperation.
