Envoy: Talks Underway on Oil Exports from Iran to Russia

Speaking to Russian Kommersant daily, Mehdi Sanaei said the two sides have reached an agreement on the general terms of a memorandum of understanding (MoU) about exports of Iran's oil to Russia, but the current talks are about details of the agreement.

The envoy said the agreement on the issue will likely be signed by the two sides before August, 2014.

Also a report by Reuters said that Russia can build a 2nd reactor at Iran's Bushehr nuclear power plant in exchange for Iranian oil.

"Iran could use some of the proceeds (to pay for) the construction by Russian companies of a second unit at the nuclear power plant in Bushehr," Sanaei was quoted as saying.

In addition to their trade and cooperation in hydrocarbons, Iran and Russia have also expanded trade ties in many non-energy sectors of the economy, including a large agriculture agreement in January 2009 and a telecommunications contract in December 2008.

In July 2010, Iran and Russia signed an agreement to increase their cooperation in developing their energy sectors.

Trade relations between the two countries has steadily increased in recent year, and includes imports and exports of motor vehicles, fruits, vegetables, glass, textiles, plastics, chemicals, hand-woven carpet, stone and plaster products among the main Iranian non-oil goods exported to Russia.