Russia mulls oil sales for Iran

MOSCOW, June 9 (UPI) -- Iranian crude oil could make its way to the international market using Russian intermediaries, the Russian energy minister said.

Russian Energy Minister Alexander Novak said it's too early to discuss direct oil imports from Iran, though expansion of bilateral trade may extend to global sales for the Islamic republic.

"Our traders will facilitate sale of Iran's oil on the global market if possible," he said.

Novak said he spoke about trade issues with Iranian representatives on the sidelines of last week's conference of ministers from the Organization of Petroleum Exporting Countries in Vienna. Plans in the works since early 2014 include potential shipments of as much as 500,000 barrels per day of Iranian crude oil from Caspian Sea terminals.

Iranian Oil Minister Bijan Zanganeh hinted at an oil-for-goods arrangement with the Russian government in late 2014, but stressed nothing had been formalized.

The Kremlin in November said it planned to sign contracts to deliver grain and possibly industrial products to the Iranians in exchange for oil.

Both sides already cooperate in a variety of fields, with Russia supplying fuel for Iran's nuclear reactor at Bushehr.

The Iranian and Russian energy sectors are both targets of Western sanctions. Crude oil exports from Iran, an OPEC member, are limited to around 1 million bpd under the terms of Western sanctions, though relief may come at the end of June if a multilateral nuclear deal is formalized. Russia's economy, meanwhile, is contracting as a result of sanctions. Western leaders at an economic summit in Germany warned Russian could face more sanctions if the conflict in Ukraine drags on.

Iran is expecting an influx of foreign cash if sanctions are lifted. Russian oil company Lukoil is said to be among the regional companies waiting in the wings.