This year, Russia is set to start supplying natural gas to Iran, as announced by Russian Energy Minister Sergei Tsivilev following discussions with Iranian officials. He mentioned that energy companies are currently in negotiations regarding pricing.

Moscow has committed to providing Tehran with up to 55 billion cubic meters of natural gas annually, with President Vladimir Putin suggesting to his Iranian counterpart in January that they should “start small.”

According to the Interfax news agency, Tsivilev stated that the initial shipment volume will be 1.8 billion cubic meters, utilizing existing infrastructure. The business newspaper Kommersant reported that the gas pipeline will traverse Azerbaijan.

“Deliveries are anticipated to commence this year, contingent upon agreement on pricing. Companies are presently negotiating the rates; we are not involved in commercial matters,” Tsivilev stated.

Following his talks with Tsivilev, Iranian Petroleum Minister Mohsen Paknejad expressed hope that some agreements would be finalized soon.

In recent years, Russia and Iran have strengthened their partnership, both facing significant Western sanctions. This month, the two nations formalized a 20-year strategic partnership aimed at enhancing collaboration in defense, intelligence sharing, nuclear energy, and fostering investment in oil and gas development.

Despite possessing the world’s second-largest natural gas reserves, Iran is nearing a point where it may become a net energy importer due to sanctions, insufficient international investment, and mismanagement issues.