Russia, Iran Reach Major Energy Agreements

Russia and Iran have finalized a series of energy agreements, including the annual supply of 55 billion cubic meters of gas to Iran and a deal for Russia to fund the construction of a new nuclear power plant in the country.

Russia previously constructed Iran’s first nuclear power plant in Bushehr, which was completed in 2011. The new agreement signals Iran’s continued pursuit of nuclear development, despite demands from the Trump Administration for Tehran to dismantle its nuclear program.

The deals follow the signing of a Comprehensive Strategic Partnership Agreement between Russia and Iran in January, which was officially ratified by Moscow this week. Iran is expected to follow suit shortly. The agreement has expanded bilateral cooperation in sectors including energy, infrastructure, and military affairs.

At the January signing ceremony in Moscow, Iranian President Massoud Pezeshkian stated that Iran would eventually import up to 55 billion cubic meters of Russian natural gas annually once logistical challenges are addressed. That same month, a separate transit agreement was signed with Azerbaijan to facilitate the delivery of Russian pipeline gas to Iran.

While Iranian officials estimate that only 1.8 bcm of gas will be supplied in 2025, the longer-term figure of 55 bcm is comparable to the volume Russia previously exported to Germany via the now-defunct Nord Stream 1 pipeline, highlighting Moscow’s strategic pivot toward eastern energy markets.

On Friday, Iranian Oil Minister Mohsen Paknejad announced a separate $4 billion agreement with Russia to develop seven Iranian oilfields, further underscoring deepening energy ties between the two nations.

Despite holding the world’s second-largest natural gas reserves, U.S. sanctions have pushed Iran toward near energy import dependency. The new agreements with Russia represent a significant step in Tehran’s efforts to circumvent Western isolation and reclaim its role in global energy markets.