Iran Watering Down Russian Trade Deal Terms

Some media outlets overreacted after Iranian Oil Minister Bijan Namdar Zanganeh visited Moscow on Aug. 5, where he and Russian Energy Minister Alexander Novak, who also heads the Iran-Russia Joint Commission, announced a memorandum of understanding on trade. Early reports indicated that, as part of the deal, Russia would buy 500,000 barrels per day of Iranian oil, which it would then sell on the spot market. In return, Russia would invest in Iranian nuclear power plants, electricity grids, agricultural products, machinery and consumer goods.