Iran and Russia find a win-win option to supply oil to Europe

Iran and Russia are stepping up in new strategic cooperation in the oil market, said Merdad Emadi, a consultant to the British international consultancy Betamatrix, commenting on Russia's purchase of oil produced in Iran.

LUKOIL recently purchased crude oil from Iran for delivery to its refinery in Romania. On February 14, three oil tankers, including one from Lukoil, sailed from the Khark Island of Iran to Europe.

Emadi believes that "given the latest restrictions imposed on Russia by the EU, Moscow must face new challenges in order to sell energy derivatives." Emadi elaborates: "In addition, due to the sanctions, factories that processed crude oil from Lukoil or Rosneft face legal issues, so they are trying to find a sophisticated entry into the markets of EU member states."

“Russian oil companies can continue to do business with European refineries and therefore avoid being crowded out by competitors from Saudi Arabia, Kuwait and Iraq,” said Emadi. “As for the Iranian side, it is very interested in increasing its presence in Europe and this cooperation allows us to achieve this goal with lower costs,”

“Now that sanctions on Iran have been lifted, these European refineries, with the approval of Russian oil companies, are able to fill the void caused by the reduced supply from Russia,” Emadi explained. In a broader context, this is a win-win situation for Iran and Russia, given the tightening of restrictions on Russia, according to the expert. He also noted that in the long term, Iran is ready to more closely link its oil and gas strategies with Russian energy companies.

According to Emadi, the deepening rift in OPEC between Saudi Arabia and its tactical allies, which have flooded the market and caused immeasurable damage to oil exporting countries, which perceive oil as a commodity with strategic value and depend on its price value, has led to the emergence of new forms of cooperation between Russia and Iran.