Russia-Iran Gas Pact: A Strategic Shift in Energy Alliances

Russia plans to export up to 55 billion cubic meters of gas annually to Iran as part of its strategy to diversify energy markets following decreased European demand due to geopolitical tensions. The agreement strengthens Russian-Iranian ties and highlights Iran's need for gas imports despite significant reserves.

In a strategic move to diversify its energy exports, Russia intends to supply Iran with up to 55 billion cubic meters of gas annually, according to Russian President Vladimir Putin. This decision comes in the wake of dwindling gas exports to Europe following the 2022 invasion of Ukraine, significantly affecting Russia's revenue from this sector.

During a press conference with Iranian President Masoud Pezeshkian, Putin detailed plans to start gas supplies to Iran with an initial modest volume of 2 bcm, eventually scaling up to 55 bcm. The projected volume mirrors the capacity of the Nord Stream 1 gas pipelines before they were damaged last year.

Despite possessing the world's second-largest gas reserves, Iran's need for imported gas arises from under-investment and sanctions-related constraints. The recent agreement between Gazprom and the National Iranian Gas Company is a testament to the evolving energy dynamics and the shifting geopolitical landscape.

(With inputs from agencies.)