Following the news of the agreement reached between Iran and the world powers regarding the country's nuclear program, Reuters on Jan. 10 published unofficial information obtained from unnamed sources in Iran and Russia about a deal in the works to exchange Iranian oil for Russian goods.

The sources of the leaked information reported an agreement to provide 500,000 barrels of oil per day (25 million tons a year) in exchange for Russian equipment and goods. This is a substantial amount of oil. For comparison, it is about the same as the entire daily oil production of Ecuador (which, although the smallest producer, is still a member of the Organization of Petroleum Exporting Countries [OPEC]). As a result of the sanctions by the United States and the European Union initiated in 2011, Iranian oil exports decreased from 2.5 million barrels per day to their current level of 1 million, so for Iran a deal with Russia would mean a 50% increase in exports. The leaked price was $1.5 billion a month, or approximately $100 per barrel, the current market price. Compared with the $7 billion overall Iran will gain from the partial lifting of sanctions, this looks like a much more attractive alternative.

The US administration was displeased by this information. The Iranians had claimed that no oil negotiations were taking place, but this was followed by discussions between US Secretary of State John Kerry and Russian Foreign Minister Sergey Lavrov. Moscow did not officially confirm or deny anything, but stated that Russia is not involved in the sanctions regime adopted by the United States and the European Union and therefore cannot be found in violation thereof. It is, accordingly, free to do as it likes.

Iranian Foreign Minister Mohammad Javad Zarif paid a Jan. 16 visit to Moscow, where he met with Lavrov and President Vladimir Putin. The parties spoke openly about the upcoming enhancement in economic cooperation between Russia and Iran. Observers' interest in the visit was peaked by Lavrov's statement, “We have nothing to hide.”