Iran-Russia Gas Deal Game-Changer for International Energy Sector
By: Kayhan International
Iran and Russia as the two leading possessors of natural gas have entered into a win-win deal regarding cooperation in this vital sector of energy.
Vital natural gas supplies to the Islamic Republic from its northern neighbor on the other side of the Caspian Sea enables Iran to meet the requirements of its northern parts at economical costs and export its own gas to Turkiye, Iraq, and Pakistan.
Moscow is the main gas supplier to European countries, which despite the imposing of the NATO war on Ukraine in a vain bid to weaken Russia, cannot afford to free themselves from supply of this vital form of energy from what they view as their antagonist.
The Islamic Republic has the potential to export gas to southeastern Europe but for the criminal sanctions of the US disturb world trade ties.
The Iranian pipeline to Pakistan, if activated, would be an economic bonanza for our eastern neighbour, which because of the undue fears of the US has until recently wasted opportunities regarding ties with Iran in the energy, trade and various other sectors.
For their part, Russia and Iran will soon start working soon on energy corridor that is now an adjunct project of the 40 billion follar four-pronged deal agreed in principle between Russian gas giant Gazprom and the National Iranian Oil Company.
This deal has four core elements, all of which are critical to the energy trading relationship envisaged by Russia, Iran, and China.
To the exasperation of the common enemy, the US, not only do these include an oil and gas trading alliance between Russia, Iran, and China – using local currencies rather than the US dollar – but also they incorporate the ‘Land Bridge’ that is beneficial for Iran.
It is worth noting that the various oil and gas exploration and development contracts shared by Russian, Chinese and Iranian companies operating in Iraq provide the link from Iran to Syria.
Under international law, oil and gas firms are perfectly entitled to station as many ‘security personnel’ as they wish in and around these high-value sites, including around the transport system that connects them.
Additional support for these hubs along much of the Land Bridge route is likely to come from plans agreed between Iraq and China to construct the US$17 billion Strategic Development Road that will create its own transport corridor from Basra (near the Iranian border) to southern Turkey (close to the Syrian border).
In short, the Iran-Russia gas deal is a game changer for the international energy sector thereby neutralizing the criminal sanctions of the US and its West European accomplices.