Moscow, Tehran near final deal on gas transit via Azerbaijan

Russia is set to begin its first gas deliveries to Iran via existing infrastructure through Azerbaijan as early as 2025, with volumes reaching up to 1.8 billion cubic meters per year.

Russian Energy Minister Sergei Tsivilev made the announcement during the 18th session of the Intergovernmental Commission on Trade and Economic Cooperation between Russia and Iran, Caliber.Az reports, citing Russian media.

“This year, the project's first phase will be implemented, relying on the existing infrastructure, and gas deliveries to Iran will reach up to 1.8 billion cubic meters,” Tsivilev stated during the meeting.

Speaking later with journalists, Tsivilev clarified that deliveries are expected to start within the year, contingent upon an agreement on pricing. “The companies are currently negotiating the price with each other. We do not interfere in the commercial relations between the companies. Right now, the companies are focused on selecting the optimal price,” he said.

Iranian Oil Minister Mohsen Paknejad confirmed that the deal has not yet been finalised but emphasised that both sides are working to conclude the agreement as quickly as possible.

Back in January, Tsivilev had announced that Moscow and Tehran had agreed on the pipeline route for supplying gas to Iran through Azerbaijan. At that time, he said that negotiations were in the final stages regarding pricing. According to the minister, the initial phase of the project could involve deliveries of up to 2 billion cubic meters annually, with the potential to scale up to 55 billion cubic meters in the future.

In a related development, Iranian Ambassador to Moscow Kazem Jalali stated in April that Iran had already prepared all necessary infrastructure to ensure the transit of Russian gas through its territory. According to Jalali, 90% of the work on the transit arrangements had been completed.

By Tamilla Hasanova