Iran Ready to Assist in Russian Gas Sales Amid 30% Budget Deficit

Amid a 30% budget deficit caused by unmet oil revenues, the Iranian Oil Minister announced Iran's readiness to assist in the transfer and sale of Russian gas. On Tuesday, November 2, Javad Owji referred to the 'deep disagreements' between Russia and Europe and mentioned Iran as one of the new markets for Russian gas. Before the military invasion of Ukraine, Russia supplied about 40% of the gas consumed in Europe, but after the attack on Ukraine, it cut gas sales to several European countries. According to Javad Owji, the gas swap pipeline from Russia to Kazakhstan, Uzbekistan, Turkmenistan, and Iran exists, and operationalizing it requires coordination with these three countries. The Oil Minister of the thirteenth government considered the start of the Shanghai Cooperation Organization meeting on Thursday, November 4, in Bishkek, Kyrgyzstan, as a suitable opportunity to reach a multilateral agreement for gas transit. Meanwhile, the head of the Iranian Budget and Planning Organization reported a 30% budget shortfall in the first seven months of the year 1402 due to 'forecasts in oil revenues' and 'failure to realize revenues from asset disposals and monetization.' Davood Manzoor mentioned on Monday, November 1, during the National Statistics Day ceremony, that the projected oil revenues in the budget were 620 trillion tomans, stating, 'It was assumed that we would sell oil at $80 and at a rate of 1.5 million barrels, but in many months of the year, the selling price and export volume have been low.' Although according to Reuters, Iran has increased its production in the months of Mordad and Shahrivar this year to the highest level since 1397, reaching 3.15 million barrels per day. Behzad Ahmadi Nia, an oil and energy journalist, states that 40% of Iran's oil revenue goes to a fund controlled by Ali Khamenei. The head of the Budget and Planning Organization also mentioned that in the first seven months of this year, 'less than 25% of the 100 trillion tomans in revenue from asset disposals and monetization has been realized.' Davood Manzoor did not mention how to cover the 30% budget shortfall in the first seven months of the current solar year but promised that next year's budget would be finalized with the approaches of the seventh plan.