Putin supports the gas pipeline project to Iran.
The Russian leader said the pipeline's capacity could reach 55 billion cubic meters per year.
Russian President Vladimir Putin has expressed support for the construction of a gas pipeline to Iran, which could supply up to 55 billion cubic meters of gas per year to the Islamic Republic. Speaking to reporters after talks with Iranian President Masoud Pezeshkian on January 17, Putin acknowledged the challenges but said the project was progressing.
This pipeline project is part of a larger strategic agreement between Russia and Iran signed on January 17, as well as a memorandum of understanding signed by the Russian state gas company Gazprom and the National Gas Company of Iran in June 2024, aimed at facilitating the supply of Russian gas to the Islamic Republic.
"There are always difficulties in coordination and pricing, technical issues… but the work is progressing. The project is underway," Russian President Putin said in response to a reporter's question about the pipeline.
"Regarding the feasible supply volume, we believe that we need to start with a small volume, around 2 billion cubic meters, but in the long term it could reach 55 billion cubic meters of gas per year."
According to Russian Energy Minister Sergey Tsivilev, the pipeline will pass through Azerbaijan, with a defined route. Speaking to reporters on January 17, he said that Moscow and Tehran are currently finalizing the details, such as pricing for future supplies.
"The volume has been approved. But price is always a commercial issue, requiring a compromise, so working groups have been formed from both sides, and experts are developing a pricing methodology," he said.
Although Iran produces approximately 270 billion cubic meters of natural gas annually and possesses the world's second-largest gas reserves after Russia, the country faces a domestic energy shortage due to high consumption and insufficient investment, partly due to US sanctions. With a population of around 89 million, Iran has one of the highest domestic gas consumption rates in the world.
This gas pipeline project will align with Tehran's plan to establish an international gas hub in cooperation with Russia, Qatar, and Turkmenistan, announced in 2023. Under the terms of the memorandum of understanding with Gazprom, Iran will be able to resell its surplus imported gas to other countries, expected to bring the Islamic Republic approximately $10-12 billion annually.
At the press conference, Putin also highlighted the potential for cooperation with Iran in the energy sector beyond natural gas, mentioning "a possible area of cooperation in the oil industry" and an ongoing nuclear energy project.
