Crossroads Asia | Economy | Central Asia

Iran, Tajikistan Finalizing Fuel Export Agreement

With Tajikistan’s main supplier of oil, Russia, under pressure, Dushanbe has turned to another partner: Iran.

Tajikistan and Iran have reportedly finalized the framework of a long-term agreement for the export of Iranian oil to energy-starved Tajikistan. The announcement comes a month after the two sides signed an agreement to establish a logistics corridor through Afghanistan. 

Russia supplies an estimated 90 percent of Tajikistan’s oil product imports. Given increased Ukrainian attacks on Russian oil infrastructure, all of Central Asia is feeling the fuel pinch. This comes also as the U.S. conflict with Iran continues past a 60-day deadline the two sides set for an agreement in June. Pressure on global energy markets abounds and Central Asian governments are scrambling to find alternative suppliers and routes. Tajikistan has turned to Iran, among others. 

A high-level Tajik delegation led by Minister of Energy and Water Daler Juma met with his Iranian counterparts in Tehran on August 15. As reported by RFE/RL’s Tajik Service, Ozodi, Dushanbe says that the possibility of importing Iranian oil products to Tajikistan, including diesel fuel, jet fuel, and crude oil, were discussed. Iran’s semi-official news outlet, Mehr News Agency, specified that the two sides had finalized a framework and agreed to set up a working group, “to examine the technical and logistical details of the cooperation.”

The devil is always in the details.

What’s clear is the need on Tajikistan’s end. In July, Juma told Ozodi that Tajikistan had fuel reserves that would last for around 60 days. Meanwhile, prices across the country have escalated and some regions reported shortages of diesel fuel,........

© The Diplomat