Russian and Chinese companies are taking advantage of the return of US sanctions on Iran to strengthen their investments in the oil rich country after the European companies withdrawal from Tehran for fear of losing their share in the US market.
ExpertOnline published a report yesterday highlighting the promising opportunities for Russian and Chinese companies in Iran after the European companies withdraw.
According to the report, Russia has been an important trading partner for Tehran where Russian companies sell drilling equipment to Iranian energy companies which have no access to Western technology.
Last year, Russia's Rosneft Oil Company signed a $30 billion deal to implement joint strategic projects in the field of oil and gas in Iran while Russian Zarubej Neft Oil Refinery signed a $700 million contract for the development of two oilfields which British BP and German Wintershall companies were hoping to win.
Meanwhile, Chinese oil giant Sinopec signed a $3 billion deal to develop the Yadavaran oil field in May replacing Royal Dutch Shell which decided not to take the risk and to leave Iran to avoid repercussions at its US market.
China National Petroleum Corporation (CNPC) is also hoping to acquire Total oil company's share in the development of the South Pars gas field after it withdrew from the project earlier this month due to US sanctions.
China has become Iran's main trading partner after it purchased one third of Iran's oil in 2017.
Trade between Iran and China increased by 19 per cent to $37 billion in 2017 while Russia doubled its trade with Iran in 2017 to more than $2 billion.