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Page added on May 29, 2017

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Russia And Iran Sign Oil-For-Goods Barter Deal; Escape Petrodollar

Public Policy

Iran signed an agreement with Russia under which it has broken free from the petrodollar, and will “sell”, or rather barter crude oil to Russia in exchange for products. The announcement was made by Iran’s Oil Minister Bijan Zanganeh, as reported by Russia’s RIA and TASS news agencies.

“The deal has been concluded. We are just waiting for the implementation from the Russian side. We have no difficulties; we signed the contract, everything is coordinated between the parties. We are waiting for Russian oil companies to send tankers,” he said, as quoted by Russian news agencies. While sanctions against Iran have been lifted, restrictions on trade in US dollars for the country’s banks remain, making it difficult to sell oil on the open market.

As reported here just over three years ago, the $20 billion agreement was initially signed in April 2014 when Iran was under Western sanctions over its nuclear program. Russian traders were to participate in the selling of Iranian oil. In exchange, Iran wanted essential goods and technology from Russia.

This is what Reuters reported in April 2014 when the deal was first announced:

Iran and Russia have made progress towards an oil-for-goods deal sources said would be worth up to $20 billion, which would enable Tehran to boost vital energy exports in defiance of Western sanctions, people familiar with the negotiations told Reuters.

 

In January Reuters reported Moscow and Tehran were discussing a barter deal that would see Moscow buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods.

 

The White House has said such a deal would raise “serious concerns” and would be inconsistent with the nuclear talks between world powers and Iran.

Little did the US know back in 2014 that less than three years later, Russia would also be running the US, courtesy of wholesale manipulation of tens of millions of Americans, whom it hacked and convinced to vote for Trump.

Sarcasm aside, when the sanctions against Tehran were lifted in 2016, Russian Energy Minister Alexander Novak said the deal was no longer necessary. However, Novak said in March 2017 that the plan was back on the table with Russia buying 100,000 barrels per day from Iran and selling the country $45 billion worth of goods, Russia Today reported.

Russia and Iran discussed energy, electricity, nuclear energy, gas and oil, as well as cooperation in the field of railways, industry, and agriculture.

Novak had announced in February that Russia’s state trading enterprise Promsirieimport has been authorized by the government to carry out the purchase of Iran’s oil through the oil-for-goods program under study by both countries. Meanwhile, Zanganeh had been quoted by the media as saying that Iran would be paid in cash for half of the oil that would be sold to Russia.  The due payments for the remaining half would be made in goods and services, the Iranian minister had said. 

A February report by the International Monetary Fund said that while Iran has been reconnected to SWIFT, significant challenges prevent Iranian banks fully-reconnecting to global banks still exist mostly due to remaining US sanctions.

“US primary sanctions apply to US financial institutions and companies, including their non-US branches (but not their subsidiaries). Moreover, with very limited exceptions, businesses and individuals related to the US continue to be generally prohibited from dealing with Iran, including with the government,” the IMF said.

“US dollar clearing restrictions have not been lifted and pose a significant challenge for non-US banks who may do business with Iran, but may not be paid in US dollars,” it added.

And since necessity is the mother of invention, what better way to bypass the world’s reserve currency than to go back to the way commerce was conducted before currencies were even created: through barter.

zerohedge



14 Comments on "Russia And Iran Sign Oil-For-Goods Barter Deal; Escape Petrodollar"

  1. makati1 on Mon, 29th May 2017 6:40 am 

    Moving forward without the empire. Another brick pulled from the dollar’s support. Go for it!

  2. Davy on Mon, 29th May 2017 9:14 am 

    Wow, I guess you skimmed the article makati. If you go to the end they are pretty sarc about nothing but a limp dick deal of talk and irrelevance in the bigger picture.

  3. makati1 on Mon, 29th May 2017 9:45 am 

    Read it in full earlier today on ZH. I’ve been following ALL of the steps being taken to take down the USD in the last few years. The trend is gaining momentum and will soon hit a critical level. When it does, the power of the U$ is over. TPTB want it taken down, so it will be taken down. The One World Currency will not be the USD. Not even close.

  4. bobinget on Mon, 29th May 2017 10:29 am 

    Here’s a shocker. Russia and Iran have simply turned services and good into money.

    #1 the World Price of Oil was most certainly used to determine to value of Iran’s oil. Presumably Russia’s exports, (arms). Value of weapons is determined by how much the ‘buyer’ ‘needs’ them. As result of

    US/Saudi 100 Billion arms deal, Iran feels a great need to play along.

    #2 The Obvious. Russia will now turn around and
    put that Iranian oil on the market in exchange for hard currency. IE: petrodollars.
    If you have ever watched YouTubes’ Russian Driving videos, you’ve seen how Russia needs hundreds of German cars daly as replacements.

    #3 This way, Iran & Russia keep to it’s agreed upon “production limits”.

  5. Davy on Mon, 29th May 2017 11:02 am 

    Mak, can you count? Put 20BIL into a global equation of Trillions then you see you are just being emotional as usual. Another limp dick position like your Bric agenda that fizzled.

  6. JuanP on Mon, 29th May 2017 2:45 pm 

    I wish Russia and Iran the best!

  7. Davy on Tue, 30th May 2017 4:16 pm 

    Hey, makati, just in:
    “US Has Successfully Shot Down A Simulated ICBM Attack”
    http://tinyurl.com/yazbrxja
    “Update: according to the Pentagon, the much anticipated test was a success, and the mock ICBM warhead was shot down over the Pacific “in a success for America’s missile defense program.” The test was the first of its kind in nearly three years, and was the first test ever targeting an intercontinental-range missile like North Korea is developing.”

  8. makati1 on Tue, 30th May 2017 6:41 pm 

    DAvy:

    1. Source of the claim: Pentagon.
    2. Accuracy of the “facts”: Questionable. (If Russia or China verified it, it would be more believable)
    3. If so, it does NOT prove that they can hit a missile that they did not know ALL of the specifics prior to the test (Launch time, speed, altitude, etc.) About like the mileage claims on new car stickers. Sucker “facts”, not real life numbers.

    And one missile is not the hundreds/thousands that will fly when the nuclear SHTF. If it is even 50% accurate, hundreds, maybe thousands of nukes will still get thru to U$ cities. A lot of false propaganda to make the unthinking serfs feel “safe”. More bullshit from the dying empire. There is NO place that will be “safe” in America if they keep prodding the Bear and Dragon.

  9. makati1 on Tue, 30th May 2017 6:52 pm 

    “Deployed in 2004 by the Bush administration, the GMD has never been used it combat. This is the first intercept test since 2014. There are currently 32 interceptor missiles in Fort Greely, Alaska and four at Vandenberg. Eight more are supposed to come on-line by the end of this year, AP reported.”

    http://www.zerohedge.com/news/2017-05-30/us-launches-first-ever-missile-test-intercept-icbm-attack

    Hmm. 36 missiles in total. Maybe another 8 later. 44 in all VS a few thousand war heads from Russia or at least hundreds from China. Sounds like “safety” to me. NOT! Sleep well tonight! Your government has your back! LMAO

  10. makati1 on Tue, 30th May 2017 7:34 pm 

    “What it actually means is a lot less certain, and far less impressive. The missile defense system actually only managed to shoot down a slower moving, “threat-representative” ICBM-styled target, and then with exact specifications from the side that fired the object about the target’s size, time of firing, and precise trajectory.

    That means knowing every bit of information about the target, the US missile defense system managed to physically hit the object under 100% optimal conditions, which should be little assurance of its functionality, particularly since previous tests under similarly optimal conditions have succeeded only about half the time.”

    http://news.antiwar.com/2017/05/30/us-missile-defense-success-doesnt-translate-to-battlefield-readiness/

    LMAO

  11. Davy on Tue, 30th May 2017 7:52 pm 

    Wow, that got makati all hot and bothered. That’s what I thought it would do.LOL.

  12. makati1 on Tue, 30th May 2017 8:05 pm 

    Davy, you make a poor psychiatrist. I point out the real world and you want to assume I am bothered by it. LOL

    I am only pointing out the propaganda bullshit that flows from every orifice of the U$ government. The stuff you all eat up as prime rib. I’m glad I do not live in a country that would attract nukes. You do. Enjoy your faux security.

  13. Davy on Tue, 30th May 2017 8:12 pm 

    You must be bothered to have three pressured comments and now a follow up. I thought I was on your ignore list anyhow. What’s up with that? LOL

  14. makati1 on Tue, 30th May 2017 11:41 pm 

    Actually, I thought about something to add after hitting the post key. And later saw a new article supporting my assertion. You, on the other hand bloviate huge piles of pretend intelligence and call that a comment. I doubt 1 in 10 here read them. I don’t. But then, pretending you are someone special takes a lot of work, doesn’t it? LMAO

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