Iran: Oil Barter Deal with Russia Unlikely

Iran’s Deputy Oil Minister Ali Majedi said today that sealing an oil barter deal with Russia would be very difficult. The two countries have been discussing the possibility that Russia would take 500,000 bpd of Iranian crude in exchange for Russian goods. The two countries are also rivals in global oil market.

“Many people think oil and gas is the main issue but this is very difficult because both countries are producers and exporters of oil and gas," Majedi told reporters on the sidelines of the Middle East Petroleum and Gas Conference in Dubai. (Reuters, 15 April)

“Russia is a producer and exporter of oil, therefore this is not easy ... There is no way that Iran will receive some of the oil from Russia. Maybe vice-versa. But not now," Majedi said. He added that striking a barter deal involving oil or gas is far harder with a major fuel exporter than with major oil importers like China. (Reuters, 15 April)

“(This is) not easy and up to now no contract, no agreement, has been signed between the two countries. But the negotiation is continuing.”

File photo: Iran Oil Export Terminal at Kharg Island (Getty Images)

Zanjani, Iranian ‘Sanctions Broker,’ Arrested

Babak Zanjani, Iranian billionaire “sanctions broker” was arrested in Tehran today. Mohsen Ej’ie, Iran’s Prosecutor General confirmed Zanjani’s arrest. (Fars News Agency, 30 December)



On Saturday, President Hassan Rouhani ordered the investigation of “sanctions profiteers” in Iran. The term, or “sanctions brokers,” is referred to people or organizations that take advantage of the special concessions and privileges given to them to defy trade sanctions, but in the process enrich themselves normally through corruption or illegitimate income.


The specific charges against Zanjani have not been disclosed. A majlis investigating committee reported this week that he owes billions of dollars to the Ministry of Oil. Zanjani was involved in “oil-for-cash” schemes, selling Iranian crude in black markets for cash.

Zanjani was also implicated by Reza Zarrab, the Iranian sanctions broker who was arrested last week in Istanbul, as his “boss” and contact in Tehran. The two reportedly were involved in “gas-for-gold’ scheme that is in the heart of the current government corruption scandal in Turkey.



File photo: Babak Zanjani (BBC)



To read about Zanjani’s debts to Oil Ministry, please click here.


To read about Rouhani’s investigation order, please click here.

To read an account of “gas-for-gold” scheme, please click here.

CBI Denies Zanjani Has Returned Oil Money – Growing Controversy

The Central Bank of Iran (CBI) announced today that Babak Zanjani, the notorious “sanctions broker” involved in the “private” sale of Iranian crude oil in the black market, has not returned any of the sales proceeds to the oil ministry’s account at CBI, Fars News Agency reported today. The central bank had said Zanjani owes the oil ministry billions of dollars. Zanjani had told reporters last week that he has repaid all that he owed.

The semi-official Fars News Agency reported today that a document presented by Zanjani to an investigating committee of Majlis showing that he had deposited funds at CBI was “forged.” The bogus document reportedly showed the funds were transferred to CBI through the central bank of Tajikistan. (Fars News Agency, 28 December)

Zanjani had become a successful “sanctions broker,” or what President Rouhani today called “sanctions profiteer.” He is the owner of a private company that had received huge allotment of Iranian crude oil to sell in the black market for cash. His company is believed to have close ties with the IRGC, who had received the original export permit from the oil ministry.

Rouhani today ordered an immediate investigation into sanctions profiteering. He said those who have taken advantage of special (anti-sanctions) concessions and privileges to enrich themselves would be identified and punished.

Zanjani has also been implicated in “gas-for-gold” scheme in Turkey. Reza Zarrab, the Iranian sanctions broker who was arrested in Istanbul last week, has told Turkish authorities that Zanjani was his “boss” and contact in Tehran.

To read an account of “gas-for-gold” scheme, please click here.

To read about Rouhani’s order, please click here.

File photo: Babak Zanjani, the “sanctions broker.” (IRNA) 

Five South Pars Phases To Come on Stream

Iranian Oil Minister Rostam Qasemi told reporters today in Tehran that five phases of the South Pars gas field will come on stream by the end of September despite U.S. sanctions against Iran. Qasemi added that a large proportion of equipment required for the development of 17 phases of the giant gas field is now being supplied by domestic manufactures. (IRNA/Press TV, 5 July)

The South Pars gas field is located in the Persian Gulf straddling the common border between Iran and Qatar. It is estimated that the field contains 14 trillion cubic meters of gas and 18 billion barrels of condensates. The gas production projects in Iran’s Pars Special Economic Energy Zone have been divided into 28 phases

Photo credit: Iranian Oil Minister Rostam Qasemi (IRNA)

Iran Oil Ministry Denies Cyber Attack on Computer Network

Iran’s Oil Ministry on Saturday denied reports of a major cyber attack on the ministry’s computer network. Iran’s official news agency IRNA quoted Ahmad Tolayi, the ministry’s IT director, as saying the ministry’s website is down due to “technical problems with fiber optics connections.” (IRNA, 2 June)



Mehr, one of Iran’s semi-official news agencies, had reported earlier that hackers had launched an attack on Friday on the ministry’s website but had failed to penetrate into its computer network.