http://www.rferl.org/featuresarticle/2006/01/92817dbb-e99b-431c-a890-1a28a45c5d34.html

Russia: What's Behind Moscow's 'Iranian Game'? 
By Victor Yasmann

Thursday, 19 January 2006

Earlier this week, Russia appeared to edge closer to the position of
the United States and European Union on the issue of Iran's nuclear
program, demanding that Tehran discontinue its pursuit of
uranium-enrichment activities that the West fears could be used to
make atomic weapons.


The board of the UN's nuclear watchdog, the International Atomic
Energy Agency (IAEA), is set to discuss the issue in early February
and may vote to refer Iran to the UN Security Council for possible
sanctions. 
  
On 14 January, Sergei Ivanov, the Russian defense minister, was
reported as saying that "if Iran does not stop all research and
practical work on uranium enrichment, the referral of the Iranian
nuclear dossier to the UN Security Council cannot be ruled out." 
  
The same day, Sergei Mironov, the speaker of Russia's upper house of
parliament, the Federation Council, said the referral would be a
"natural move." 
  
Not So Simple
  
Since then, however, Russia has made clear it will not be pigeonholed
in its stance on Iran. 
  
As momentum gathered for a crackdown on Tehran, Russian Foreign
Minister Sergei Lavrov on 17 January joined the West in rejecting a
call by Iran for fresh negotiations, saying no new talks would be held
until Iran brought to a halt the atomic fuel research work it resumed
last week. 
For now, Russia appears to be keeping its options open. What may be
happening behind the scenes is a battle between three political camps.

  
But Lavrov also said Russia was not yet ready to join Western moves
for Iran to be referred immediately to the United Nations Security
Council for possible sanctions. 
  
EU foreign-policy chief Javier Solana said 18 January that Russia has
proposed a delay in referring Iran to the Security Council, and that a
proposal by Moscow -- originally rejected by Tehran -- to enrich
uranium for Iran on Russian soil remains a possibility. 
  
The United States and the so-called EU-3 of Britain, France, and
Germany, feel the Security Council, with its powerful enforcement
mechanism, is the best forum for resolving the Iran nuclear crisis.
But Russia and fellow Security Council member China hope the issue can
be resolved within the IAEA, which has no substantial punitive power
of its own.
  
Traditional Ties
  
There are economic and geopolitical interests behind Russia's softer
stance on Iran. Most notably, there is the $1 billion Bushehr nuclear
power station that Russia is set to complete in Iran this year -- a
project that was strongly opposed by Jerusalem, which sees Iran as its
primary security threat, and Washington.
  
Then there are energy ties. Russia's "Nezavisimaya gazeta" reported
that Russia's state-controlled Gazprom monopoly has invested up to
$750 million into a number of energy projects in Iran. Russian exports
to Iran of metals and machine manufacturing supplies have reached a
total of about $2 billion a year. 
  
A second key area of Russian exports is arms sales, which resumed in
2000 after Russia left the so-called Gore-Chernomyrdin protocol, a
secret agreement between Moscow and Washington about restricted arms
deliveries to Iran.
  
In late December 2005, Russia signed a deal worth $700 million with
Iran to sell 29 of its Tor M-1 antimissile systems. And there is room
for such sales to grow. Russian officials with ties to the country's
military-industrial complex will be loathe to sacrifice these sales
for the sake of UN sanctions. 
  
Russia in October 2005 also launched a booster rocket carrying eight
satellites, one of which belonged to Iran. There are plans to launch a
second Iranian satellite in 2007. 
  
Uneasy Neighbors?
  
Geopolitically, Iran is Russia's biggest neighbor in the Caspian,
where Moscow is looking to restore its influence and take advantage of
short transport corridors leading to the Persian Gulf. 
  
But in late 2005, Russia began distancing itself from the strong
anti-Semitic rhetoric of Iranian President Mahmud Ahmadinejad, and
complying with Western desires to use its close ties with the Islamic
Republic as a lever in the nuclear issue. 
  
This was in part because of Russia's desire to maintain special
relations with Israel. An important commercial ally for Russia, Israel
also has strong ties with the United States. 
Russia and fellow Security Council member China hope the issue can be
resolved within the IAEA, the UN's nuclear watchdog.

  
Jerusalem soon joined the United States and Western Europe in urging
Russia to intervene on the Iranian nuclear issue, and on 17 January,
sent its top security and atomic-energy officials to Moscow to press
the point. 
  
It remains to be seen whether Iran will be referred to the Security
Council, or how veto-wielding China and Russia will act in such a
case. Although Beijing and Moscow are currently united in their
opposition to sanctions, sanctions would have a different impact on each. 
  
Sanctions would mean a cutoff in Iranian oil supplies, leading to a
drastic increase in world oil prices -- a massive boon to supplier
nations like Russia, and a major setback to increasingly energy-hungry
consumer nations like China. 
  
For now, Russia appears to be keeping its options open. What may be
happening behind the scenes is a domestic battle between three
political camps: pro-economic forces who relish the thought of Russia
profiting from Iran sanctions, foreign-policy watchers seeking
stronger ties with the West, and defense-industry stalwarts who hope
to boost military sales to Tehran.










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