IranIran-Russia oil deal threatens nuclear negotiations
Iran said that in exchange for Iranian oil, Russia could build a second reactor at Iran’s Bushehr nuclear power plant. Russia could also provide Iran with trucks, railroad tracks, mini-refineries, grain, and other goods for Iranian oil. In a deal worth $1.5 billion a month, Iran would export 500,000 barrels of oil per day to Russia. The deal would increase Iran’s oil exports, which have been reduced to about one million barrels a day by American and European sanctions aimed at curbing Iran’s nuclear program.
Iran’s ambassador to Russia, Mehdi Sanaei, said that in exchange for Iranian oil, Russia could build a second reactor at Iran’s Bushehr nuclear power plant. Russia could also provide Iran with trucks, railroad tracks, mini-refineries, or other goods for Iranian oil. “Iran could use some of the proceeds (to pay for) the construction by Russian companies of a second unit at the nuclear power plant in Bushehr,” Sanaei said.
Yahoo News reports that in a deal worth $1.5 billion a month, Iran would export 500,000 barrels of oil per day to Russia. The deal would increase Iran’s oil exports, which have been reduced to about one million barrels a day by American and European sanctions aimed at curbing Iran’s nuclear program.
“We are concerned about these reports and Secretary (of State John) Kerry directly expressed this concern with (Russian) Foreign Minister (Sergei) Lavrov today,” Caitlin Hayden, spokeswoman for the White House National Security Council, said on Monday.
According to Sanaei, an oil deal and agreements on major economic policy between Iran and Russia could be signed before August 2014. Russian Economy Minister Alexei Ulyukayev will visit Iran in April to discuss trade.
In addition to building a second nuclear reactor at Bushehr, Russia could provide Iran with investment in gas fields, and Russian grain.
Sanaei has advised Russia to ignore the U.S. government concerns. “Our Russian friends, who have stood by us at difficult moments, should have advantages on the Iranian market … But Russian companies must hurry to get into their niche in our market and not hesitate out of fear of Western sanctions,” he said.
U.S. Under Secretary of State Wendy Sherman insists that the Russian-Iranian oil deal is unlikely because such a deal could make the current nuclear discussions between Iran and the West difficult to continue.
On Monday, a senior Obama administration official said that the White House doubts the proposed oil agreement. “I think that we will hear a lot of people hoping to put things together, but I think you have heard from the President of the United States, from the Secretary of State, from me, from my colleagues at Treasury, that the major parts of our sanctions are in place and our underlying sanctions architecture is in place both on the oil side, on the financial and banking side, and if people try to evade our sanctions, we will find them.” the official said at a press conference.
Reza Marashi, research director at the National Iranian American Council and former U.S. State department official, told Al Jazeera he understands the U.S. concerns. “I think there is concern on the part of the United States because right now we feel we have Iran in a good place; meaning that we are in the diplomatic process in an effort to try and get a larger deal, a final deal, that solves all of the problems and there is concern that we can empower elements inside of Iran that are opposed to diplomacy if we go forward with this deal between Iran and Russia.”
