Russia and Iran BFF?

What was that about staring into Putin's eyes and seeing his soul, Georgie?

By DEREK SANDS Despite mounting U.S. and international pressure on Tehran's nuclear program, the United States holds little chance of discouraging Russia from pursuing energy cooperation with the cash-strapped but oil- and gas-rich Iran.

Russia wants Iranian oil and natural gas, and while concerns over Tehran's nuclear program may affect relations in the future, for the time being Moscow is not hesitating to invest in energy exploration and production in Iran.

LUKoil, the largest Russian oil company, agreed in January to take over development of the 26 billion-barrel Azadegan oil field. Japanese oil company INPEX had contracted for a 75 percent stake in the field, but under pressure from the United States, dropped its share to 10 percent at the end of last year.

And in December Russian media reported that Tehran and Moscow would pursue a joint venture to develop natural gas deposits in the two countries.

[snip]

Moscow has been under pressure for years from the United States regarding all its dealings with Iran, ranging from arms to nuclear technology and now possibly energy. It has tried to deal with the conflicting pulls of the desire for improved relations with the United States and maintaining Iran as a 'stable partner for a long time' (Putin's words) by responding to U.S. demands during critical moments, while at the same time safeguarding its strategic and economic interests in Iran, a country that has been an important market for Russian goods, nuclear technology and conventional armament, and a supporter of Russian policies in Central Asia and Caucasus, Farhi said. But according to Kent Moors, director of the Energy Policy Research Group at Duquesne University and an expert on Russian and Caspian energy policy, this pressure is unlikely to affect Russia's energy business with Iran.

Moscow concluded some time ago that the U.S. has limited options in preventing Russian or other foreign dealings concerning Iranian oil and gas projects, Moors said. Direct pressure on Russia also seems unlikely to change its behavior.

The U.S. at this point cannot force Russia to do anything. However, if there are substantive indications that Iran has moved into a new phase of nuclear enrichment (having stockpiled enough enriched gas, for example), Moscow will pull back. Russia does not want a nuclear armed Iran any more than we do, Moors said. Discussions between Moscow and Tehran on oil and gas development are ongoing, but these talks will be unable to ignore Iranian President Mahmoud Ahmadinejad's insistence the country develop a full nuclear cycle.