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Russian oil pulling out of Iran: sources

How India, Iran plan to bypass US oil sanctions
In another strike to Iran's struggling economy under renewed US sanctions, Russian state-owned oil company Zarubezhneft has ended its planned business in the country, according to sources.

Iran had previously signed a deal with Zarubezhneft to develop two oilfields, but the Trump administration's reinstitution of sanctions against Iran has caused the company to pull out of the deal.

Zarubezhneft had an 80-percent share in the deal, so this is a big hit Iran's struggling oil sector, which has seen an increase of attempts to smuggle fuel out of the country.

The cost of project was estimated at around $700 million, according to the news site of Iran's Oil Ministry.

The new sanctions are set to start Monday, targeting Iran's oil sector in an attempt to force the mullah regime to end its pursuit of nuclear weapons and its support of terrorism.

This comes after another Russian oil producer, Lukoil, decided in May to end its planned projects in Iran.