Russia has started exporting fuel to Iran by rail this year for the first time, according to industry sources and export data, Reuters reported.
The move comes as both countries face Western sanctions and look to forge closer economic ties. Russia has been hit with sanctions on its oil products due to its military operation in Ukraine, while Iran has been under Western sanctions for years.
Last autumn, Russia’s Deputy Prime Minister Alexander Novak announced swap supplies of oil products with Iran, but actual shipments only started this year.
In February and March, Russia supplied up to 30,000 tonnes of gasoline and diesel to Iran by rail via Kazakhstan and Turkmenistan, according to sources.
one of the sources familiar with supplies to Iran said, “We expect fuel supplies to Iran to rise this year, but we already see several issues with logistics due to rail congestion. That may keep exports from booming.”
Some gasoline cargoes were sent on from Iran to neighbouring states, including Iraq, by truck, one source said.
While Iran is an oil producer and has its refineries, its consumption has exceeded domestic fuel production, especially in its northern provinces.
Russian oil companies are interested in exporting diesel and gasoline to Iran by rail as exports by sea face high freight rates and a price cap imposed by the G7 countries. However, the rail exports face bottlenecks along the route, the sources said.
