Quite similar to how he’s handling relations with Iran to appease the US
Is the well debated and documented Russo-Iranian bonhomie over? Well, the question became very relevant especially after Russian President Dmitry Medvedev signed agreements with the US government a few months back to impose a sweeping ban on trade of weapons with Iran. This was done as a part of “measures to implement the 1929 UN Security Council sanctions.” Russia also refused to sell S-300s to Iran, despite this not coming in the UN sanction list.
Such a step can prove to be self-defeating for Russia. The reasons are not hard to find. Russo-Iranian relations were antagonistic till as recently as the Iraq-Iran war, when Russia supplied weapons to secular leader Saddam Hussein of Iraq. But the collapse of USSR and the subsequent emergence of Iran prompted collaboration in defence trade and energy cooperation. Trade relations between the two increased from $1 billion in 2005 to $3.7 billion in 2008. Russia is also Iran’s seventh largest trading partner. Thanks to Medvedev, Russia’s agreements on energy cooperation with Iran could be affected. Worse, Iran is Russia’s third largest defence trade partner currently. Subsequently, if Ahmedinejad gets slighted, Russia could lose defence trade worth $13 billion by 2025.
Apparently, By imposing such sanctions on Iran, Russia aims to strengthen its shattered relations with the US and solicit some financial assistance from Uncle Sam. But such a move by Medvedev to appease US over Iran seems quite the more confusing, given the fact that Obama himself had a few weeks ago confirmed that the US does not view Iran anymore as a nuclear threat nation. And the ones who’d be most advantaged on this issue? China of course. With Russia losing brownie points, China would immediately dig itself into the second largest OPEC oil producer.
Is the well debated and documented Russo-Iranian bonhomie over? Well, the question became very relevant especially after Russian President Dmitry Medvedev signed agreements with the US government a few months back to impose a sweeping ban on trade of weapons with Iran. This was done as a part of “measures to implement the 1929 UN Security Council sanctions.” Russia also refused to sell S-300s to Iran, despite this not coming in the UN sanction list.
Such a step can prove to be self-defeating for Russia. The reasons are not hard to find. Russo-Iranian relations were antagonistic till as recently as the Iraq-Iran war, when Russia supplied weapons to secular leader Saddam Hussein of Iraq. But the collapse of USSR and the subsequent emergence of Iran prompted collaboration in defence trade and energy cooperation. Trade relations between the two increased from $1 billion in 2005 to $3.7 billion in 2008. Russia is also Iran’s seventh largest trading partner. Thanks to Medvedev, Russia’s agreements on energy cooperation with Iran could be affected. Worse, Iran is Russia’s third largest defence trade partner currently. Subsequently, if Ahmedinejad gets slighted, Russia could lose defence trade worth $13 billion by 2025.
Apparently, By imposing such sanctions on Iran, Russia aims to strengthen its shattered relations with the US and solicit some financial assistance from Uncle Sam. But such a move by Medvedev to appease US over Iran seems quite the more confusing, given the fact that Obama himself had a few weeks ago confirmed that the US does not view Iran anymore as a nuclear threat nation. And the ones who’d be most advantaged on this issue? China of course. With Russia losing brownie points, China would immediately dig itself into the second largest OPEC oil producer.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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