Iran, Turkmenistan negotiate gas-for-goods deal

Iran and Turkmenistan negotiated a deal on Sunday according to which Iran will import goods from Turkmenistan in exchange for exporting natural gas to its northern neighbor.

“Iran is ready for a gas-for-goods deal with neighboring Turkmenistan,” the Shana News Agency quoted Iranian Oil Minister Bijan Namdar Zanganeh as saying.

“Iran intends to prepare the grounds for exporting goods to Turkmenistan in return for gas purchase from Turkmenistan,” Zanganeh said in a meeting in Tehran with the visiting Turkmen Vice President Khoja Muhammad Muhammadov.

Zanganeh urged Iranian manufacturing companies to make the necessary arrangements for exporting more items to Turkmenistan, according to Press TV.

Iran exports machinery, construction materials, sedans, buses, food stuff, agricultural and petrochemical products, electrical products and home appliances to Turkmenistan, and imports natural gas, electricity, textiles and agricultural products from its northern neighbor.

Meanwhile, Iran and Russia are also working on a 20-billion- dollar oil-for-goods deal whereby Iran will export oil to Russia in exchange for Russian goods.

The recent interim nuclear deal with the world powers has provided a space for Iran to revive its oil and gas exports to a limited extent, as Tehran is seeking ways to boost its oil-dependent economy.

Iran's Oil Ministry unveiled a draft model of its new oil and gas contracts in February to attract foreign companies to develop Iran's hydrocarbon reservoirs.

On March 11, National Iranian Gas Company Managing Director Hamidreza Araqi said Iran is ready to transit natural gas from Turkmenistan to the Persian Gulf Arab states.

He further said that the country has defined new routes to boost gas exports to Europe.