Page 27 - IRANRptJun22

5.1.2 Import/export dynamics
Barter deal to provide Russia with gas turbines, auto parts and Iran with steel
Moscow and Tehran have struck a barter deal under which Russia will provide Iran with steel and the Iranians will supply the Russians with gas turbines, automotive parts for cars and components for other equipment, Vedomosti reported on June 1.
The Russian daily cited Iranian Trade and Industry Minister Reza Fatemi Amin as announcing the agreement.
Iran stands to benefit from Ukraine war sanctions on Moscow that hinder or prevent certain import flows to Russia that Iranian suppliers can replace. Tehran has also expressed interest in importing lead, zinc and alumina from Russia due to growing domestic demand, Fatemi Amin was also reported as saying.
The largest Russian steel producers are NLMK , Evraz, MMK, Severstal, Metalloinvest, OMK and Mechel. A major Russian producer of zinc and lead is UMMC. For alumina, UC Rusal is a key provider.
According to FINAM, Iran ranks 10th in the world for steel production with a global market share of around 1.5%, while Russia ranked fifth prior to the late February start of the war in Ukraine, with a share of about 4%.
Sanctions have not yet been imposed against the Russian non-ferrous metallurgy sector, but much of the global market has turned cold on cooperating with most Russian businesses.
Iran, the most sanctioned country in the world prior to the wave of sanctions that hit Moscow in relation to the Ukraine conflict, has no compunction as regards trade and investment with Russia as it attempts to prop up its own economy, severely undermined by years of US sanctions. Though it has called
27 IRAN Country Report June 2022 www.intellinews.com