Iran signs memorandum with Russian energy giant ​

ERBIL, Kurdistan Region - Tehran signed a memorandum of understanding with Russian energy giant Gazprom, an official said on Thursday as the country seeks to develop cooperation between Iran and Russia in the oil and gas sector.

“During the past few days, a memorandum of understanding was signed with Gazprom, based on which we will develop our cooperation in the field of gas trade,” Iranian state media (IRNA) cited Majid Chegeni, the CEO of Iran’s National Gas Company, as saying.

The memorandum of understanding, signed on Tuesday, is worth $40 billion, of which $25 billion will be for the development of gas fields, and the remaining $15 billion will be allocated for the development of oil fields, according to IRNA.

Chegeni stated that one of the most important goals of the long-term memorandum was constructing gas transmission lines and developing gas trade with neighboring countries.

Iran exports gas to neighboring countries regularly, especially Iraq which receives millions of cubic meters of gas from the country each year to battle its power shortage issues.

While meeting with Russian President Vladimir Putin in Tehran on Tuesday, Iran's supreme leader Ayatollah Ali Khamenei stated that “long-term cooperation between Iran and Russia is deeply beneficial to both countries,” calling for a quick implementation of the countries’ oil and gas contracts.

A tripartite summit was held in Tehran on Tuesday between Russia’s Putin, Turkey's Recep Tayyip Erdogan, and Iran’s Ebrahim Raisi, during which a variety of subjects were discussed including the continued conflict in Syria, the Ukraine war, and grain shipments.