Apple is said to be making headway with negotiations with carriers to sell the iPhone in Russia within the year according to a report today.

Eldar Murtazin, editor of Moscow-based Mobile Research Group told the Moscow Times, “About 20,000 iPhone handsets are brought into the country in suitcases every month,” he continued, “The current model, which sells officially in six countries for a marked-up $399, currently sells for about $1,000 in Moscow.”

Two Russian carriers, Mobile TeleSystems and MegaFon, have confirmed to having talks with Apple, but no final commitment has been reached.