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Iran to Receive 300 mcm of Russian Gas Daily

Iranian flag - Reuters/File Photo
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Iran to Receive 300 mcm of Russian Gas Daily

Iranian flag - Reuters/File Photo

Iran will receive 300 million cubic metres of Russian gas daily, the official IRNA news agency reported Iran's oil minister Javad Owji as saying on Wednesday.

Russian energy giant Gazprom signed a memorandum in June with the National Iranian Gas Company to supply Russian pipeline gas to Iran.

"We currently produce between 840 to 850 million cubic metres per day of natural gas in Iran. Under the agreement, 300 million cubic metres of gas per day will be transferred from Russia through the Caspian Sea," Owji said, adding that the cost of creating the necessary infrastructure would be borne by Russia, according to Reuters.

As part of the 30 year agreement, any surplus Russian gas not used domestically by Iran will be exported to other countries, Owji said, adding the annual value of the contract ranges between 10 billion to 12 billion dollars.

Gazprom has seen its gas supplies to Europe, once the source of two thirds of its gas sales revenue, plummeting to post-Soviet lows over the conflict in Ukraine. Last year it incurred losses of almost $7 billion, its first annual loss since 1999.

The amount supplied to Iran would translate into around 110 billion cubic metres of gas supply per year, on par with the combined capacities of Nord Stream 1 and Nord Stream 2 pipelines -- a total of four pipelines laid on the bed of the Baltic Sea from Russia to Germany. Three were damaged by blasts in September 2022 and one remains unscathed.

Iran sits on the world's second-largest gas reserves after Russia, and Moscow has long sought to make inroads into its natural gas business. US sanctions have hindered Iran's access to technology and slowed the development of its gas exports.

 

 

 

 

 

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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)

US President Donald Trump on Thursday said Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April 2, but made no mention of a reprieve for Canada despite his Commerce secretary saying a comparable exemption was likely.

"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement," Trump wrote on Truth Social. "This Agreement is until April 2nd."

Earlier on Thursday, US Commerce Secretary Howard Lutnick said the one-month reprieve on hefty tariffs on goods imported from Mexico and Canada that has been granted to automotive products is likely to be extended to all products that comply with the US-Mexico-Canada Agreement on trade.

Lutnick told CNBC he expected Trump to announce that extension on Thursday, a day after exempting automotive goods from the 25% tariffs he slapped on imports from Canada and Mexico earlier in the week.

Trump "is going to decide this today," Lutnick said, adding "it's likely that it will cover all USMCA-compliant goods and services."

"So if you think about it this way, if you lived under Donald Trump's US-Mexico-Canada agreement, you will get a reprieve from these tariffs now. If you chose to go outside of that, you did so at your own risk, and today is when that reckoning comes," he said.

Nonetheless, Trump's social media post made no mention of a reprieve for Canada, the other party to the USMCA deal that Trump negotiated during his first term as president.

Lutnick said his "off the cuff" estimate was that more than 50% of the goods imported from the two US neighbors - also its largest two trading partners - were compliant with the USMCA deal that Trump negotiated during his first term as president.

Canadian Prime Minister Justin Trudeau called Lutnick's comments "promising" in remarks to reporters in Canada.

"That aligns with some of the conversations that we have been having with administration officials, but I'm going to wait for an official agreement to talk about Canadian response and look at the details of it," Trudeau said. "But it is a promising sign. But I will highlight that it means that the tariffs remain in place, and therefore our response will remain in place."

Lutnick emphasized that the reprieve would only last until April 2, when he said the administration plans to move ahead with reciprocal tariffs under which the US will impose levies that match those imposed by trading partners.

In the meantime, he said, the current hiatus is about getting fentanyl deaths down, which is the initial justification Trump used for the tariffs on Mexico and Canada and levies on Chinese goods that have now risen to 20%.

"On April 2, we're going to move with the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we'll move just to the reciprocal tariff conversation," Lutnick said. "But if they haven't, this will stay on."

Indeed, Trudeau is expecting the US and Canada to remain in a trade war.

"I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he told reporters in Ottawa.