Iran set to reach 20 year deal with Venezuela following US sanctions

Iran set to reach 20 year deal with Venezuela following US sanctions
Iran and Venezuela are negotiating a 20 year economic partnership amid US sanctions on both states.
2 min read
19 October, 2021
The Iranian and Venezuelan foreign ministers met in Tehran [Getty]

Venezuela and Iran are to conclude a 20-year collaboration deal when President Nicolás Maduro visits Tehran in the coming months, Al Jazeera has reported.

Iran Foreign Minister Hossein Amir-Abdollahian revealed the upcoming deal with the South American oil-producing country during a Monday media briefing with his Venezuelan counterpart Felix Plasencia.

Tehran-based body will be created to work on the details of the economic deal. 

Live Story

"All of this confirms that relations between the two countries are on the rise," the Iranian Foreign Minister said.

Amir-Abdollahian said that there were several Venezuelan cities where Iranian "goods are accessible", while accusing the US of being "unconstructive" in its relations with Venezuela.

Plasencia also spoke with Iranian President Ebrahim Raisi about bolstering relations.

"In this administration, we are determined to set aside problems created by enemies and continue the country’s path of progress," Raisi said.

Venezuela and Iran have both been under US embargoes, affecting their ability to export oil to the world. Both countries have recently suffered economic hardship and have blamed US sanctions for this.

A vessel flying the Iranian flag left Venezuela with 2 million barrels of heavy crude despite US efforts to restrict trade between the two countries, Reuters reported this weekend.

Tehran is looking to secure similar collaborative deals with big global players, including a 25-year economic arrangement reached with China earlier this year.

It is also seeking a closer relationship with Russia and in September was finally admitted to the Shanghai Cooperation Organisation, which could open up more trade options.