• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 23 mins The Dirt on Clean Electric Cars
  • 13 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 3 hours Trump vs. MbS
  • 6 hours Uber IPO Proposals Value Company at $120 Billion
  • 5 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 13 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 10 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 6 mins EU to Splash Billions on Battery Factories
  • 7 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 55 mins Coal remains a major source of power in Europe.
  • 10 hours Nopec Sherman act legislation
  • 3 hours Poland signs 20-year deal on U.S. LNG supplies
Trump Threatens Iran’s Oil Clients

Trump Threatens Iran’s Oil Clients

Trump has directed yet another…

Bearish Sentiment Returns To Oil Markets

Bearish Sentiment Returns To Oil Markets

Oil market are set for…

Russia Strengthening Relationship With Iran

The recent breakdown in cooperation between Russia and the West has seen Russia trying to rebuild its economic relationship with Iran after a dry spell brought about by Moscow’s cooperation on international sanctions. The Wall Street Journal reports that Russian and Iranian officials met on April 27 to discuss deals on electricity worth over $10 billion.

In recent years, the U.S. has gone to great lengths to keep Russia in the international fold as it confronted Iran over its suspect nuclear program. Despite having a long history of economic partnership with Tehran, the Kremlin cooperated with the other permanent members of the United Nations Security Council and Germany (the P5+1) to enact painful sanctions on Iran.

Now, with U.S.-Russian relations hitting a multi-decade low, Russian President Vladimir Putin appears less inclined to keep up the pressure on the Islamic republic. Russia and Iran are in talks over swapping Iranian oil for goods and food supplies, which could be worth up to an estimated $20 billion. The deal would see Iran exporting 500,000 barrels of oil per day to Russia, a move that U.S. officials have said would violate sanctions. The two countries are also discussing power deals, including the construction of hydroelectric dams and the export of Russian electricity to Iran.

Related Article: Russia Loses Leverage with China on Gas Deal

The pending deals are being seen as potentially undermining to the carefully structured sanctions that have been widely credited with forcing Iran to the negotiating table. If the Iranian economy gets a lifeline from Russia, the U.S. could lose leverage in talks with Iran over a final resolution to its nuclear program.

The P5+1 nations agreed to a six-month temporary deal that relieved some pressure on Iran in exchange for a freeze of the Iranian nuclear program. The two sides have set a July deadline for a longer-term deal.

Meanwhile, Iranian officials are quietly cautioning Russia against dismissing how damaging sanctions can be, as Russia itself becomes the recipient of economic sanctions from the West over its role in Ukraine. The Wall Street Journal reports that many top Iranian officials and businessmen have been surprised to realize just how devastating sanctions have been on their own country.  

By James Burgess of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment
  • Arkadiy on April 30 2014 said:
    We can see the U.S. as the leader to impose the sanctions agains different countries in the modern history.
    Where are they get from the exclusive rights to decide
    what is white and what is black? Is it POWER?
    Iraq, Afganistan, Serbia, Libya... All these countries were destroyed by U.S. military!
    U.S. exports the "Western Values" using the bombs and drones. Adn Washington blames Moscow for using the gas like the weapon. I think it is much better! At least
    the Russian "gas weapon" does not conduce to the deaths of people!
    U.S. supported the "Maidan" in Kiev! Joe Biden
    asked Viktor Yanukovoch not to use veapon against Maidan
    in February. But 2 months after Joe Biden visited Kiev
    and Kiev started the MILITARY operations against Ukrain people
    on the South-East of Ukraine... This is the good example of double standards! The road to the Ukraine crisis is covered with the Victoria's pies!

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News