Iran, Russia working to seal $20 billion oil-for-goods deal - sources

Source: Reuters

(Reuters) - Iran and Russia have made progress towards an oil-for-goods deal sources said would be worth up to $20 billion (12.02 billion pounds), which would enable Tehran to boost vital energy exports in defiance of Western sanctions, people familiar with the negotiations told Reuters.

In January Reuters reported Moscow and Tehran were discussing a barter deal that would see Moscow buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods.

The White House has said such a deal would raise "serious concerns" and would be inconsistent with the nuclear talks between world powers and Iran.

A Russian source said Moscow had "prepared all documents from its side", adding that completion of a deal was awaiting agreement on what oil price to lock in.

The source said the two sides were looking at a barter arrangement that would see Iranian oil being exchanged for industrial goods including metals and food, but said there was no military equipment involved. The source added that the deal was expected to reach $15 to $20 billion in total and would be done in stages with an initial $6 billion to $8 billion tranche.

Read more: http://uk.reuters.com/article/2014/04/02/uk-iran-russia-oil-idUKBREA311MF20140402