Russia has pledged to fund the construction of a new nuclear power plant in Iran as part of a broader energy agreement that also includes a major gas deal between the two countries, as relations between Moscow and Tehran continue to deepen.

On Friday, Iranian Oil Minister Mohsen Paknejad traveled to Moscow to meet with his Russian counterpart, Sergei Tsivilev, as part of the 18th Joint Economic Cooperation Commission.

Paknejad announced that Moscow and Tehran are strengthening their bilateral ties in what he described as “peaceful” nuclear energy, with the construction of a new nuclear power plant in Iran, to be financed through Russian funding.

“Iran and Russia will continue their cooperation in the peaceful use of nuclear energy and the construction of new nuclear energy facilities and the completion of phases two and three of the Bushehr power plant using Moscow’s credit line,” the Iranian minister said during the closing ceremony of the commission.

According to Iranian state media, the two countries also agreed to a 55 billion cubic meters gas transfer deal.

Despite holding the world’s second-largest gas reserves after Russia, Iran continues to import gas due to severe under-investment in its energy sector, caused by mounting US sanctions targeting Tehran’s oil industry under President Donald Trump’s “maximum pressure” campaign, which aims to cut the country’s crude exports to zero and prevent it from obtaining a nuclear weapon.

As part of the energy agreement, Paknejad also announced that Iran will sign a $4 billion deal with Russian companies to develop seven oil fields across the country.

“Multilateral cooperation between Iran and Russia through membership in the Shanghai Cooperation Organization, BRICS, the Gas Exporting Countries Forum, and OPEC+ has led to the provision of common interests, peace, stability, and international security, and I am confident that this cooperation will deepen,” the Iranian minister said during his speech.

Tehran became a member of the Shanghai Cooperation Organization (SCO) — a Eurasian security and political group — in 2023 and also joined the BRICS group in 2024 — a bloc of Brazil, Russia, India, China, and South Africa that positions itself as an alternative to economic institutions like the World Bank and the International Monetary Fund.

These energy deals and expanding nuclear cooperation between Russia and Iran come as the Iranian regime prepares for a third round of nuclear talks with the US in Oman this weekend.

Tehran has previously rejected halting its uranium enrichment program, insisting that the country’s right to enrich uranium is non-negotiable, despite Washington’s threats of military action, additional sanctions, and tariffs if an agreement is not reached to curb Iran’s nuclear activities.

However, US special envoy Steve Witkoff said that any deal with Iran must require the complete dismantling of its “nuclear enrichment and weaponization program.” Witkoff’s comments came after he received criticism for suggesting the Islamic Republic would be allowed to maintain its nuclear program in a limited capacity.

With both Iran and Russia under Western sanctions and Russia’s oil and gas exports to Europe sharply reduced since the start of the war in Ukraine, the two nations have increasingly strengthened their bilateral ties.

Earlier this week, Russian President Vladimir Putin signed a law officially ratifying a 20-year strategic partnership agreement with Tehran, further deepening their military cooperation.

As an increasingly close partner of Iran, Moscow’s diplomatic role in the ongoing US-Iran nuclear talks could be significant in facilitating a potential agreement between the two adversaries. Russia can leverage its position as a veto-wielding member of the UN Security Council and a signatory to a now-defunct 2015 nuclear deal that imposed temporary limits on the Iranian nuclear program in exchange for sanctions relief.

Russia could reportedly be considered a potential destination for Iran’s stockpile of enriched uranium and a possible mediator in any future nuclear deal, particularly in the event of breaches to the agreement.

This option would allow Russia to “return the handed-over stockpile of highly enriched uranium to Tehran” if Washington were to violate the deal, ensuring that Iran would not be penalized for American non-compliance.

Some experts and lawmakers in the US have expressed concern that a deal could allow Iran to maintain a vast nuclear program while enjoying the benefits of sanctions relief.

On Thursday, Iranian Foreign Minister Abbas Araqchi expressed his willingness to engage in talks with European powers regarding Tehran’s nuclear program, indicating that the country is keeping its options open. In response, France also signaled that European nations were open to dialogue if Iran showed it was seriously engaged.

Despite Iran’s claims that its nuclear program is solely for civilian purposes rather than weapon development, Western states have said there is no “credible civilian justification” for the country’s recent nuclear activity, arguing it “gives Iran the capability to rapidly produce sufficient fissile material for multiple nuclear weapons.”

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