Russia and Iran are holding energy talks as Moscow looks to boost oil exports to Asia

• Russia and Iran are holding talks on energy and trade in Tehran on Wednesday.
• Both are under tough US sanctions, with Russia also looking to boost energy exports to Asia.

Russia and Iran are holding talks on energy and trade in Tehran Wednesday, with both sides looking to boost ties and mitigate the damage of US sanctions.

Deputy Prime Minister of Russia Alexander Novak will hold talks with Iranian officials, including oil minister Javad Owji, according to Iranian news service Shana.

The high-level talks come a day after Russia's deputy economic development minister Vladimir Ilichev held meetings with Iran's deputy oil minister Ahmad Asadzadeh, who is responsible for trading.

Western governments have imposed tough sanctions on Russia after it invaded Ukraine in February. Russia's ally Tehran has been chafing under sanctions for years, with tough new rules applied by the US in 2018 after the breakdown of the Iran nuclear deal.

The meeting comes as Russia looks to diversify its energy exports away from the West and to boost its trade in other areas as its economy slows.

Among other issues, the two sides will discuss Russia using Iran as an export route for goods to markets such as India, Shana reported, citing minister Rostam Ghasemi.

"A path is being pursued to increasing trade, economic, logistics, investment, financial and banking cooperation, despite the unprecedented pressure that Russia is currently experiencing from unfriendly countries," Deputy PM Novak said Tuesday, according to Russian state news service Interfax.

Russia is an enormous energy exporter but it has cut its production levels as a result of sanctions, with the US and UK banning imports and many European buyers "self-sanctioning."

Output was 830,000 barrels a day lower in mid-May than it was in February, according to Bloomberg. However, higher energy prices mean Russia is still bringing in plenty of revenue.

Rystad Energy, a consultancy, has said Russia will struggle to sharply increase exports to Asia due to physical constraints such as a lack of pipeline infrastructure.