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Russia Seeks Gains to Ease Possible Pain from Iran Deal

President Vladimir Putin urged the world to celebrate Tuesday’s six-power chief understanding with Iran, yet the agreement carries risks for Russia since it could expostulate down oil prices.

Moscow sees the deal, that offers Iran service from sanctions in exchange for curbing the chief program, as opening the way to selling Tehran barb invulnerability systems and winning remunerative new chief appetite contracts.

But it also creates doubt for Moscow as the reintroduction of Iranian oil onto universe markets could pull down tellurian prices and cause serve repairs to Russia’s struggling economy, that is heavily contingent on oil exports.

Unsurprisingly, the Kremlin chose to stress the positives from the deal, clinched after marathon talks in Vienna between Iran and a organisation of countries including the United States and Russia, to reassure the Russian people they would see gains.

“The universe can now breathe a sigh of relief,” Putin pronounced in a statement. He pronounced the agreement would coax municipal chief team-work between Russia and Iran, and contribute to combating terrorism in the Middle East.

Foreign Minister Sergei Lavrov finished transparent Russia approaching some prerogative for backing the deal, suggesting Washington should desert skeleton to base barb invulnerability systems in Europe.

“We all substantially remember that in April 2009 in Prague President (Barack) Obama pronounced that if the Iran chief module emanate is sorted out, afterwards the task of creating the European partial of the barb invulnerability complement will disappear,” he said.

Lavrov also hold out the possibility of Russia offered arms to Iran soon, notwithstanding a weapons embargo that will sojourn for the subsequent 5 years. “In the next 5 years deliveries of arms to Iran will be possible, underneath the conditions of the applicable procedures, presentation and verification by the U.N. Security Council,” he said.

Glass Half-Full or Half-Empty?

The intention was clear — to show that for Russia the glass is half-full rather than half-empty.

Some observers had suggested it did not unequivocally wish an agreement, especially since of the probable impact on oil prices and out of concern that Moscow would remove tellurian station if Iran’s family with the United States improved.

The agreement deprives Moscow of a negotiate chip with Washington, and potential change in the Middle East, since Russia’s comparatively good ties with Iran gave it a role in the talks that the United States could not ignore.

But Russia distributed that a deal was unavoidable and that it was critical to get a head start in the competition to reap domestic and economic advantages once an accord was reached.

Putin began moves to improve family with Tehran when he returned to the presidency in 2012, and redoubled those efforts when the West imposed mercantile sanctions on Russia final year over the purpose in the Ukraine crisis.

Russian news agencies quoted several officials on Tuesday who talked adult possibilities for cooperation, including in the oil and gas, rail, chief appetite and electricity sectors. Trade with Iran, one method said, was organisation to increase.

Some deals are already in place.

Russia concluded final Nov to build dual some-more chief reactors in Iran, with the possibility of a serve six, after years of cooperation over the construction of Iran’s Bushehr chief plant.

Moscow also pronounced in April that it had started an oil-for-goods barter with Tehran underneath that it would buy adult to 500,000 barrels of Iranian oil a day in return for cash, Russian products and services.

Another area where Russia sees good prospects for trade is in arms. Soon after universe powers and Iran reached an interim chief understanding in April, Putin sealed a decree lifting a ban on the smoothness of S-300 anti-missile rocket systems to Iran.

Interfax news group quoted a source “familiar with the situation” who finished transparent Moscow would go forward with the S-300 sales even yet the arms embargo remains.

Will Russia Come Out on Top? 

The big questions now are possibly Moscow can spin softened ties into trade contracts, and how oil prices are affected.

Ivan Kopeikin, an analyst at BCS Express brokerage, pronounced the likelihood of an Iran understanding had already been factored into prices and that he approaching no poignant serve change.

That will inspire Moscow, yet analysts contend most still has to be finished for it to come out on top from the deal, possibly economically or politically.

Global comprehension organisation Stratfor pronounced this month the increase in Iranian oil reaching universe markets could revoke Russia’s ability to use appetite as a political arms opposite Europe, that depends heavily on Russian supplies.

“Russia’s change in the Middle East is vanishing fast at the same time Europe is starting to wriggle out of Russia’s appetite grip. And as Russia’s options are narrowing, U.S. options are augmenting in both the Middle East and Europe. This is an uncomfortable conditions for Putin, for sure,” it said.

Article source: http://www.themoscowtimes.com/article/525660.html