16 July 2018

Yeah, This is Working So Well

In response to new sanctions against new sanctions against Iran, Russia is planning to invest fifty billion dollars in the Iranian energy industry:
Iran has touted $50bn worth of potential Russian investments in its oil and gas sector as it seeks to deepen its relationship with Moscow, amid mounting pressure from the US to curb the country’s energy exports and diplomatically isolate Tehran.


“Russia is ready to invest $50bn in Iran’s oil and gas sectors,” Ali Akbar Velayati, a senior adviser to Iran’s supreme leader, said during a visit to Moscow that included a meeting with President Vladimir Putin. “Military and technical co-operation with Russia is of major importance to Iran.”


Mr Velayati, Ayatollah Ali Khamenei’s top diplomat, also used a media interview during his visit to say that a Russian oil company had already signed a $4bn deal with Iran that “will be implemented soon”, without providing details. He added: “Two other major Russian oil companies, Rosneft and Gazprom, have started talks with Iran’s oil ministry to sign contracts worth up to $10bn.”


The suggestion of deeper co-operation between the two countries’ energy industries comes eight months after Russian companies signed preliminary agreements to invest up to $30bn in Iran’s oil industry, as part of a visit by Mr Putin to Tehran.


But Mr Trump’s decision to rip up that accord and threaten to sanction companies that trade in Iranian oil has led Tehran to work with Moscow. Hardline Iranian politicians have urged Mr Rouhani’s government to expand co-operation with Russia and China to replace European companies unwilling to risk the wrath of Washington.
This is a foreseeable result of bad policy. 

Sanctions after sanctions, particularly without the support of allies, is like pushing on a string.


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