Ali Akbar Velayati, foreign policy adviser to Supreme Leader Ayatollah Ali Khamenei, talked with Iranian television to discuss his latest trip to Russia to meet with President Vladimir Putin. According to Velayati, during the two-hour meeting, which was “clear, constructive and friendly,” the two discussed a number of issues pertinent to both countries, such as energy and the region.

The meeting comes at a significant time for Iran. With the American exit from the Iranian nuclear deal, the reinstatement of US sanctions, particularly oil sanctions, coupled with increasing tension between Iran and Israel on Syria’s southern border, Iran will need to more deeply rely on Russia’s political and economic clout.

According to Velayati, trade between Iran and Russia increased by 36% in the first four months of 2018. During the interview, Velayati disclosed that a Russian oil company recently signed a $4 billion contract with Iran’s Ministry of Oil. He added that the Russian oil company Rosneft and gas company Gazprom are in talks with Tehran for a $10 billion contract. 

Velayati said during his July 12 interview that Russia is ready to invest $50 billion in the fields of gas and oil in Iran to “replace the companies who have left Iran.” As a result of the 2015 nuclear deal, a number of Western energy companies entered the Iranian energy sector. One of the first to exit was the French company Total, which, alongside a Chinese company, signed a $5 billion contract for the phase 11 of South Pars gas field off the coast of Iran. In May, Total said that without US sanctions waivers it would exit Iran. Though Total’s investment in the gas field — one of the largest in the world — had so far only been a reportedly $47 million, the news was a blow to the policy of President Hassan Rouhani’s administration of attracting Western investment to the country.