Iran, Russia to launch new import plan

Iran and Russia could introduce a barter mechanism that would allow Tehran to import Russian raw materials in exchange for Iran-made goods, Press TV reported on Friday, citing Iranian Trade Minister Reza Fatemi Amin.

According to the minister, speaking to the press on the sidelines of a meeting of the Russian-Iranian Trade and Economic Cooperation Commission, the countries have already agreed to introduce bartering for certain categories of goods. The official stressed that Iran needs to import raw materials for its metallurgical and mining industries. These include steel, zinc, lead and aluminum.

In return, Russia will receive auto parts and gas turbines made in Iran. The minister explained that several Iranian companies have already signed contracts for the supply and maintenance of gas turbines for Russian power plants.

During a visit to Iran this week, Deputy Prime Minister Alexander Novak urged Tehran to cooperate more closely with Moscow on trade. According to Shana news agency, he also presented Tehran officials with a list of products that Russia currently needs, mainly in the automotive, shipbuilding and pharmaceutical industries.

Since Russia launched its military operation in Ukraine in late February and was hit by an onslaught of Western sanctions, imports of Russian-made steel have been banned by a number of countries.

In mid-March, metal made in Russia or re-exported from the country was banned in the EU. A month later, Britain joined the embargo. According to Alexei Mordashov, head of the Russian Steel Union and major owner of Severstal, as of early April Russia had around 4 million tons of steel that had to be diverted due to the restrictions.