Russia, Iran ready to launch 'oil-for-goods' deal next week

Iranian Oil Minister Bijan Namdar Zanganeh on Saturday said his country hopes to start implementing an "oil-for-goods" barter deal with Russia after June 7, Russia Today reported.

It will supply Iranian crude oil to Russia in exchange for grain, equipment and construction materials, the minister added.

We hope that next week Russia will take its first imports, said Zanganeh. "Much of this will be for cash and we will be using this money to buy commodities from the Russians."

Zanganeh said Russia may also participate in other projects with Iran in exchange for oil. He confirmed discussing the deal with Russian Energy Minister Aleksandr Novak on June 3 in Vienna.

Russia plans to buy "much lower than 500,000 barrels day" in exchange for cash, which Iran will then spend on Russian goods such as steel, wheat and oil byproducts, he said, adding that Kazakhstan and Belarus will be able to buy Iranian oil from Russia under the agreement, as they are part of the Eurasian Customs Union.