Iran–Russia Gas Exchange Agreement Nears Final Stage, Says Acting Iranian Oil Minister Hamid Bovard
Tehran, Iran | October 26, 2026 | The Global Journal
Negotiations on a comprehensive gas exchange agreement between Iran and Russia have reached their final stages, according to Hamid Bovard, acting head of Iran’s Oil Ministry. He made the remarks during a visit to Moscow on Sunday, October 25, Iranian news agency Mehr News Agency (MNA) reported.
Bovard accompanied Iranian President Masoud Pezeshkian to Moscow for the eighth summit of the Gas Exporting Countries Forum (GECF). During the visit, he highlighted progress in ongoing discussions aimed at strengthening energy cooperation and advancing the proposed gas exchange agreement between the two countries.
However, the full terms of the proposed agreement, the volume of gas to be supplied, and its relationship with the plan to transport Russian gas to Iran through Azerbaijan have not been specified in the reported remarks.
Gas Cooperation Entered a New Phase in 2024
Cooperation between Iran and Russia in the gas sector entered a new phase in June 2024. At the time, the National Iranian Gas Company and Russian energy giant Gazprom signed a memorandum of understanding to explore the possibility of supplying Russian natural gas to Iran.
In April 2025, officials from the two countries said they were discussing plans to transport Russian gas to Iran through Azerbaijan. The initial proposed supply volume was estimated at around 1.8 billion cubic meters annually. The project’s potential capacity in subsequent phases was also projected to reach as much as 55 billion cubic meters per year.
If implemented, the plan could increase Russia’s role in Iran’s gas supply system. However, detailed information on implementation, transportation infrastructure and the final supply volume has not yet been disclosed.
Gas Pricing and Payment Arrangements Remain Key Issues
Gas pricing and payment arrangements have remained important issues in negotiations to finalize a Russian gas import agreement.
In June 2026, Saeed Tavakoli, managing director of the National Iranian Gas Company, said the two sides were still discussing these issues as they worked toward finalizing the contract.
In his latest remarks, Bovard reported progress on the broader gas exchange agreement but did not clarify whether the two countries had reached a final understanding on pricing, payment mechanisms or supply conditions.
Tehran and Moscow Seek to Strengthen Strategic Energy Ties
Iran and Russia have long sought to expand their economic and strategic relationship, with energy cooperation serving as a key area of bilateral engagement. Alongside efforts to expand gas trade, both countries have emphasized broader economic cooperation.
Earlier, Iranian President Masoud Pezeshkian and Russian President Vladimir Putin highlighted the importance of expanding bilateral cooperation, including in the energy sector, during a meeting on the sidelines of a Commonwealth of Independent States (CIS) summit.
Pezeshkian and Putin are also scheduled to meet in the coming days on the sidelines of the eighth GECF summit. Their discussions could include gas supplies, energy trade and broader economic cooperation between the two countries.
Potential Implications for Regional Energy Trade
If finalized, the Iran–Russia gas exchange agreement could add a new dimension to energy trade between the two countries. In particular, implementation of the proposed transit route through Azerbaijan could create an additional commercial link in the regional gas supply network.
However, the agreement’s full economic implications remain difficult to assess until official details are released regarding its final terms, supply volumes, pricing, payment arrangements and transportation mechanisms.
Source: Mehr News Agency (MNA).
