Iranian and Russian officials signing agreements on February 10, 2024

Iran Announces Grain Purchase Deal With Russia

Saturday, 02/10/2024

In the backdrop of expanding ties between Tehran and Moscow, a long-term agreement for the purchase of grains from Russia was announced on Saturday.

According to Iranian government media, the agreement, was inked during the visit of Iran's deputy minister of agriculture to Moscow. Under the terms of the agreement, leading Russian banks Sberbank and VTB will play pivotal roles by facilitating necessary credit lines.

The development follows a credit line worth 6.5 billion rubles (equivalent to over 71 million USD) announced in December for importing essential goods from Russia to Iran.

The deepening political, trade, and military ties between Russia and Iran have been closely watched, particularly by the United States, which views the relationship with growing concern. The alliance between Tehran and Moscow has strengthened, especially as Iran has supplied Russia with drones and missiles amid the ongoing conflict in Ukraine.

Analysts suggest that the Gaza war has provided Russia with a strategic advantage by diverting global attention away from its involvement in Ukraine while enabling alignment with nations expressing solidarity with the Palestinian cause.

In a recent announcement, the Russian foreign ministry highlighted an acceleration in efforts to finalize a "major new interstate agreement" with Iran. The scope of the agreement remains undisclosed, but it underscores the deepening ties across political, trade, and military domains.

Despite delays in renewing a two-decade-old strategic agreement with Iran, Russia's reliance on Iranian weapons, including kamikaze drones, amid its war in Ukraine, underscores the importance of the alliance for Moscow.

Much like North Korea, Iran remains a declared adversary of the United States and holds potential to furnish Moscow with military hardware crucial for its operations in Ukraine.

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