The Role of Nuclear Energy and Hydrocarbons in Developing Iran-Russia Cooperation

Samyar Rostami, New Eastern Outlook, October 3, 2025 —

Certainly, the energy alliance between Russia and Iran could influence the routes of energy flows and new gas pipelines. Even the energy cooperation between Iran and Russia could contribute to the emergence of a major Eurasian energy corridor.

After its ratification in parliaments and approval by domestic institutions of the two countries, the Iran-Russia Comprehensive Strategic Agreement has effectively become a win-win game and an important step in elevating bilateral relations to a new, long-term, and strategic level.

Cooperation in the field of energy is a fundamental principle of strategic cooperation, and the two countries aim to strengthen their domestic energy industries, mitigate the impact of Western sanctions, and enhance their long-term energy security.

In the past year, the process of multi-dimensional cooperation in the field of energy between the two countries has accelerated. Joint energy cooperation was prominent in the recent meeting of the presidents of Iran and Russia in China.

On September 18, Iranian Oil Minister Mohsen Paknejad and Russian Energy Minister Sergei Tsivilev met in Tehran and discussed bilateral cooperation in the fuel and energy sectors and the implementation of agreements reached at the 18th session of the Intergovernmental Commission (April 2025 in Moscow). In fact, the recent visit of the Russian Energy Minister to Tehran and his meeting with Iranian officials was a new step in strengthening the strategic partnership between the two countries in the fields of oil, gas, and electricity; increasing electricity exchanges; and strengthening joint investments in energy infrastructure and convergence in energy corridors.

Russia and Iran together hold more than 20 percent of the world’s oil reserves and 40 percent of the world’s natural gas reserves. They can influence global energy markets, supply chains, pricing strategies, and geopolitical negotiations.

Despite Iran’s steps in the field of nuclear power generation, nuclear power accounts for about one percent of the current mix of electricity generation sources in Iran. But currently, about 10% of the world’s electricity is supplied by nuclear energy, and Iran must produce 5 to 9 times as much nuclear electricity to reach the global level of electricity production.

One of Iran’s most fundamental energy strategies in recent years has been the development of nuclear power production, and in a 20-year perspective, 10% of the country’s electricity is to be supplied through nuclear energy. In fact, expanding international cooperation is one of Iran’s most central strategies for developing nuclear power production.

The recent signing of a $25 billion agreement between Tehran and Moscow to build 4 new nuclear power plants in the city of Sirik in Iran’s Hormozgan province is a major step towards realizing the strategy of “producing 20,000 megawatts of nuclear power” and “nuclear electricity” production, and resolving existing problems in the field of power imbalance, according to strategic documents. Also, Iran and Russia have reached initial agreements on the construction of small-scale nuclear power plants.

From the perspective of Iranian nuclear officials, the issue of small-scale power plants is also of great importance, and the future of the world is moving towards such power plants. Therefore, an important part of their construction technology can be obtained from Russia.

Cooperation between Iran and Russia in the field of electricity has also increased significantly in recent years. Iran and Russia have extensive cooperation in technical and engineering fields related to oil and gas extraction and refining, and Russian companies have participated in Iranian oil and gas projects.

In another dimension, based on upstream documents, the National Iranian Gas Company is obliged to provide the conditions for Iran to become a regional energy hub. One of the most important steps on this path is cooperation with Russia. From Tehran’s perspective, cooperation with Russia and the member states of the Eurasian Economic Union is an important step on the path to transforming Iran into a regional energy hub. Therefore, strengthening energy ties not only has an economic dimension but also provides a framework for both countries to create new energy alliances.

After Iranian Oil Minister Mohsen Paknejad’s visit to Moscow on April 28, 2025, the flow of Russian gas to northern Iran was set to begin later this year. Tehran expects to start receiving Russian gas via Azerbaijan.

In fact, this energy cooperation will create a new market for Russian natural gas and help Iran meet its energy needs in the north of the country. The common goal is to enable the annual delivery of 55 billion cubic meters of gas from Russia to Iran. However, the existing pipelines between them only transit about 2 billion cubic meters per year. Therefore, the construction of a new gas pipeline between the two countries is on the agenda.

Also, the idea of ​​creating a direct pipeline that would transport Russian gas from Iran to Pakistan and India is, in fact, a geopolitical and geoeconomic project with multi-layered dimensions. Also, the importance of a direct gas connection between Iran and South Asia, and Russia will practically turn the country into a regional gas transmission hub.

In another dimension, apart from the $40 billion agreement between the two countries to develop Iranian gas fields, the $4 billion contract currently being finalized to develop seven Iranian oil fields, several memorandums of understanding with major Russian companies in the field of upstream industries, and modernization of Iranian energy infrastructure can make Iranian-Russian energy cooperation more multidimensional.

Outlook

The outlook for long-term cooperation and energy alliance between Russia and Iran depends on domestic and international factors, sanctions management, maintaining continuous cooperation, adapting to the environment, overcoming infrastructure obstacles, and adapting to developments in international and regional crises.

Continued Western pressure on both countries will most likely be a strong incentive to maintain and strengthen bilateral energy relations.

Certainly, the energy alliance between Russia and Iran could influence the routes of energy flows and new gas pipelines. Even the energy cooperation between Iran and Russia could contribute to the emergence of a major Eurasian energy corridor. In the meantime, more joint contracts in the field of natural gas, construction of power plants and refineries, nuclear energy, a greater presence of Russian companies in Iran, energy exchange, coordination of oil and gas policies within the framework of OPEC+ and OPEC Gas are foreseeable. In the meantime, the share of energy in the prospect of increasing annual bilateral trade to $40 billion is expected to increase.