- Russian and Iranian energy giants reached a preliminary deal Monday for future gas and oil projects.
- The memorandum of understanding is worth $40 billion, Iran's state media said.
- The deal comes amid Vladimir Putin's visit to Tehran on Tuesday.
Russia and Iran reached a tentative deal to develop future oil and gas projects Tuesday, signing a memorandum of understanding worth $40 billion.
Gazprom and the National Iranian Oil Company reached preliminary terms for the Russian state-run energy giant to aid in the development oil and gas fields as well as the construction of pipelines and liquefied natural gas projects.
"The National Iranian Oil Company does not ignore any investment opportunity," Mohsen Khojastehmehr, NIOC's chief executive, told Iran's state media.
The agreement comes on the same day Russian President Vladimir Putin visits Tehran to meet with Iranian and Turkish heads of state.
Iran owns the largest supply of natural gas reserves ahead of Russia. And both are subject to US sanctions that have limited their access to international technologies and capital. A deal between the two comes amid a strained energy market suffering from skyrocketing prices and unstable sourcing.
Europe is preparing for a potential full-scale shutdown of Russian gas flows after the invasion of Ukraine upended global energy markets and drew condemnation that resulted in sanctions from the West.
As a result, Russia is turning to other countries to send energy supplies. A Russia-China gas pipeline will break ground within the next two years, as the two allies deepen their economic and energy ties. The pipeline will run 2,600 kilometers and is expected to begin service in 2030.
Meanwhile, the European Union signed a new gas deal with Azerbaijan on Monday to double imports of natural gas by 2027 to at least 20 billion cubic meters.
