Iran and Russia may introduce major barter arrangements to facilitate trade between the two countries, including a plan that could allow Iran to import steel from Russia in return for exports of car parts and gas turbines to the country.
Iranian trade and industries minister Reza Fatemi Amin said on Thursday that Iran will use barter trade with Russia to ensure supplies of raw materials for use in its metals and mining sector.
Speaking on the sidelines of Iran-Russia joint economic and trade cooperation commission in Tehran, Fatemi Amin said Iran will need to import raw metals like zinc, lead and alumina from Russia to respond to a growing domestic demand.
He said, however, that Iran and Russia had agreed to introduce barter arrangements for certain goods and commodities, including for Russian steel.
The minister said Iran will be able to export car parts and gas turbines to Russia in return for Russian steel imports.
He said some Iranian companies have signed deals to supply or repair gas turbines in Russian power plants.
Iran and Russia are planning to increase bilateral trade as they seek to offset the impacts of American sanctions targeting their economies.
Iranian Oil Minister Javad Owji, a co-chair of Iran-Russia economic and trade cooperation commission, said on Wednesday that the annual value of economic ties between the two countries can increase by nearly 10 times to reach $40 billion.
Owji made the announcement following a meeting in Tehran with Russian Deputy Prime Minister Alexander Novak where the two officials signed major cooperation agreements on energy and banking issues.