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Russia-Iran Nuclear Connections

Nivedita Das Kundu

February 10, 2006

Russia's concern over Iran's nuclear programme is increasing with every 
passing day. Iranian authorities are showing un-willingness to accept 
Russia's proposal to enrich uranium in Russian territory. Russia is trying 
to resolve an international crisis over Iran's suspected nuclear weapons 
programme, though its position on Iran has rhetorically moved closer to the 
European "Troika" (France, Germany, UK). Russia agreed to Iran's referral to 
the UN Security Council on the condition that the council would take action 
only after the March 6 IAEA meeting. Iranian authorities are showing 
defiance and are not willing to listen to the rest of the world either. 
Russia is continuing its diplomatic efforts to persuade Iran to accept its 
proposal to come out of the present crisis.

Russia does not want Iran to become a new member of the nuclear weapons 
club. At the same time, it feels that sanctions will not help to persuade 
Iran to take note of international concerns, given that sanctions have not 
normally served the purpose and particularly in the case of Iran it is 
feared that imposition of sanctions is likely to harm the global oil prices. 
It is also feared that any such move is likely to result in creating even 
greater hatred toward the countries behind this decision and will strengthen
the hardliners' grip on Iran. This will also hinder the effort of Iranian 
reformists to achieve their goals. At the same time, Tehran could also 
initiate or accelerate efforts to acquire the ultimate weapon as a 
deterrent, if not to use in retaliation at an opportune time. Further, with 
its vast petroleum assets and great authority, the Iranian regime may start 
doing what it is already accused of doing.

In view of these repercussions, at present Russia's proposal looks to be the 
best option for both Iran and the rest of the world. Generally it is 
perceived that in case of failure of  this Russian diplomatic effort, 
sanctions could emerge as the most viable decision for the global community, 
which is slated to meet on March 6 to further discuss the Iran nuclear 
issue.

There are economic and geopolitical interests behind Russia's soft stance on 
Iran. Geopolitically, Iran is Russia's biggest neighbour in the Caspian 
region, where Moscow is trying to restore its influence. Iran being Russia's 
neighbour, Russia would prefer to maintain friendly relations with it, 
particularly in view of Tehran's influence in Central Asia and 
Transcaucasus. Iran could resort to supporting terrorist activities within 
the Commonwealth of Independent States by providing Muslim insurgents with 
weapons, money and volunteers mainly in Chechnya and Tajikistan. It will 
therefore not be beneficial for Russia to antagonise Iran at present. 
Besides, Russia's other neighbours like Turkmenistan, Azerbaijan and 
Armenia, which are also Iran's immediate neighbours, will also face 
difficulty if sanctions are imposed on Iran. Further, Russia could also 
resist the expansion of the North Atlantic Treaty Organisation and US 
influence in the South Caucasus and Central Asian region through a possible 
alliance with Iran. Therefore, from the strategic point of view, it is 
important for Russia to maintain friendly relations with Iran.

It is because of Iran's importance that Teheran was given observer status in 
the Shanghai Cooperation Organization. Russia will adopt a policy to support 
Iran rather than to go against it. Given that NATO's eastward expansion is 
already creating tension for Russia, the anti-Western regime in Iran would 
be natural ally for Russia. Thus the combination of economic incentives, 
strategic interests and Russia's desire to play an important role in the 
global decision making process might induce Kremlin to work towards finding 
a diplomatic way out of the crisis.

Russia is very clear in taking Iran's side, with which it has close economic 
and military partnerships. Russia-Iran relations have been strengthened by 
arms sale and the sale of nuclear power reactors to Iran in addition to the 
US$840 million reactor at Bushehr. Russia expects to achieve up to $10 
billion from its Bushehr deal, though it is currently building the reactor 
on credit to be paid by Iran only after the completion of the project. 
Russia will also sell Iran an air-defence system known as the Tor-M1. The 
Tor-M1 uses a mobile launcher to track and destroy multiple targets. It is 
the largest weapons deal between Moscow and Tehran within the past five 
years. There are also energy ties between Iran and Russia. Russia's 
state-controlled Gazprom has invested up to $750 million in a number of 
energy projects in Iran. Russia also exports metals and machine
manufacturing supplies to Iran worth about $2 billion a year. Russia has 
also launched a booster rocket carrying an Iranian satellite in October 2005 
and there are further plans to launch a second Iranian satellite in the year 
2007. Thus, any setback in Russia-Iran relations would impact on these 
commercial contracts and affect Russia's nuclear enterprises as well as its 
military-industrial complex.

Russia would like to see Iran as an important strategic and economic 
partner. Regarding Russia's nuclear cooperation with Iran, it focuses 
exclusively on economic issues. Sanctions and admonitions will not change 
Russia's relation with Iran. Russia's present move also focused on its 
current policy towards Iran. Though at present Iran has not shown clear 
acceptance of the Russian proposal, Russia however feels that it has its own 
ways to persuade Iran, mainly through the supply of defensive weapons. As 
there are indications that Iran might need to protect its territory in the 
near future, particularly in the context of recent US pronouncements not 
ruling out the military option. Moreover, there are reports that Israel has 
drawn up plans for surgical strikes against Iran's nuclear facilities with 
bunker busting bombs supplied by the US. There are also reports that the
Bush administration is preparing its NATO allies for a possible military 
strike against suspected nuclear sites in Iran. Nevertheless, in the 
backdrop of these realities Russia's intention will be to defend its own 
interest while helping Iran to solve the present crisis. Moscow is hoping to 
come out with an agreement with Iran on the uranium enrichment issue in 
Russian territory during the February 16 talks with Iran, which would cover 
a whole range of issues concerning the two countries.

Russia is now in a difficult position. On the one hand it is absolutely 
clear that a nuclear Iran is against its interests. In this respect, 
Russia's position is fully compatible with that of Western nations. On the 
other hand, if Moscow completely alienates Iran by siding with the West, the 
regime in Tehran could cause concern for Russia. One thing is clear to 
Russia: an isolated and nuclear Iran is certainly more dangerous than an 
Iran that is being engaged by the West and the international community. This 
consideration alone dictates that Russia keeps all lines of communication 
open and continues to maintain ties with its southern neighbour. While 
agreeing with the Western nations on nuclear non-proliferation, Russia would 
not like to lose its special geopolitical and economic ties with Iran. It is 
a difficult, but necessary, policy line for Russia, for it needs to take
into account the short- and long-term consequences of any steps it takes on 
this issue.

(Dr. Nivedita Das Kundu is Associate Fellow at the Institute for Defence 
Studies and Analyses, New Delhi.)

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