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Russia says oil deal with Iran is legal

IANS 07 Aug 2014, 6:43:55 AM IST
Moscow: Russia said on Wednesday signing a memorandum of understanding with Iran for crude oil shipments did not violate United Nations Security Council (UNSC) resolutions restricting Tehran over its controversial nuclear programme.

"The Iranian side has offered Russia to participate in arranging crude oil shipments, including to Russia...Volumes are to be determined by the market demand," Xinhua quoted Russia's Energy Minister Alexander Novak as saying.

The five-year framework accord envisages Russia's active role in "the construction and overhaul of (Iranian power) generation capacities, electricity supply network infrastructure development, as well as oil and gas," the statement said.

Russia might supply Iran with automobiles and equipment as well as consumer and agricultural goods, it said.

Further contract details will be discussed when an intergovernmental committee on trade and economic cooperation meets in Tehran Sept 9-10, the statement said.

"I'd like to emphasise that cooperation between our countries does not violate the UN Security Council's resolutions," Novak said.

The US expressed "serious concern" about the alleged oil deal between Moscow and Tehran in January when reports emerged that the two countries were negotiating a $1.5-billion a month oil for goods deal.