Media learned about Iran’s plans to sell auto parts to Russia in exchange for steel

Tehran and Moscow could introduce a barter trade that would allow Iran to import steel from Russia in exchange for exports of auto parts and gas turbines to the country. This was reported on May 26 by the Press TV channel with reference to the Minister of Industry, Mines and Trade of Iran, Reza Fatemi-Amin.

As the minister said on the sidelines of the meeting of the permanent Russian-Iranian commission on trade and economic cooperation, Iran will use barter trade with Russia to ensure the supply of raw materials and its use in the metallurgical and mining sectors.

He noted that Tehran will also need to import zinc, lead, aluminum to meet growing domestic demand.

The minister said that in exchange for Russian steel products, his country could export car parts and gas turbines.

According to him, some Iranian companies have already signed contracts for the supply and repair of gas turbines for Russian power plants.

As noted on the channel’s website, Iran and Russia plan to increase bilateral trade, seeking to offset the effects of US sanctions against their economies.

Earlier, on May 21, Russian Minister of Transport Vitaly Savelyev said that the sanctions imposed against Russia by Western countries are an incentive for the country to look for new logistics corridors. The International Transport Corridor (ITC) “North-South” is a multimodal route for the transportation of passengers and goods from Asia to Europe through Russia. It will connect, in particular, Russia, Azerbaijan, Iran and India.

On May 19, Russian Energy Minister Nikolai Shulginov, during a meeting with Russian Prime Minister Mikhail Mishustin, said that Russia is working on additional supply channels and logistics from friendly countries for the supply of spare parts and components in the energy sector.

A week earlier it was reported that car parts for March-April rose by an average of 30% compared to February. In addition, due to supply constraints, there is a shortage of parts for body repairs.

On April 29, the All-Russian Union of Insurers informed Izvestia that the supply of analogues of auto parts to Russia was arranged through Turkey, and later it is planned to import components through Kazakhstan. Against the backdrop of the departure of Western companies, the supply of original parts for some brands of cars has stopped, and stocks in warehouses will last for 2-4 months.

It is also noted that Moscow is ready to discuss with Bangkok the possibility of localizing the production of automotive parts in Russia.

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