Pros and Cons of the Nuclear Agreement for Russia

Russian and Iranian officials have expressed confidence that the nuclear agreement between Iran and the P5+1 group, which will lead to the lifting of sanctions and the end of Iran's international isolation, will improve Moscow-Tehran bilateral relations. However, some economic experts have a different opinion. In an interview with Russia's Channel One, Iranian Foreign Minister Mohammad Javad Zarif described Moscow as Tehran's strategic partner and expressed hope that economic cooperation between the two countries would expand after the lifting of sanctions. He particularly called for the continuation of technical-military cooperation, adding that the level of this cooperation would be enhanced with the delivery of S-300 missile defense systems. He also emphasized that Russia has been one of the most important partners in Iran's nuclear program and will remain the main partner according to the new agreement. He further outlined oil and gas cooperation as a priority, explaining that Russia and Iran have common interests in this area that manifest in maintaining stability in global market prices. On the other hand, Russian Foreign Minister Sergey Lavrov also expressed confidence that the nuclear agreement with Iran would pave the way for expanding cooperation between the two countries: "The lifting of restrictions stemming from illegal unilateral sanctions against Iran will be a factor in improving Moscow-Tehran economic cooperation. The situation where the U.S. and the European Union prevented joint projects between Russia and Iran or financial relations between the two countries will come to an end. The path for technical-military cooperation between Russia and Iran will be cleared, which is very important given the need to counter the threat of terrorism in the region. We also have a massive nuclear energy development plan with Iran that no external factor can hinder." The Russian Ministry of Economic Development also announced that Moscow and Tehran are looking to expand joint projects in nuclear, electricity, railway, oil and gas field development, and food trade. The statement emphasized that the lifting of banking and financial sanctions against Iran would lead to the development of bilateral cooperation and an increase in trade volume between the two countries. However, Yevgeny Minchenko, an economic expert in Moscow, argues that the end of Iran's international isolation will be detrimental to Russia: "The conditions are fraught with risks for Russia. While Iran is likely to gradually become a Mecca for investors, Russia, which is under Western sanctions, suffers from a lack of investment. Furthermore, Iran will become Russia's main competitor in the energy market, and the discussion is not just about falling oil and gas prices but about the competition between the two countries for customers. I believe that participation in resolving the Iranian nuclear dispute was important and even necessary for Russia, but in the energy market, we will pay the cost of this step." Many large Russian companies have expressed hope for expanding cooperation with Iran. Sergey Mikhailov, a representative of the Russian Motor Manufacturers Association, said that his company intends to meet one-quarter of Iran's energy and gas transfer equipment needs if sanctions against Iran are lifted. Yuri Lizin, a representative of Uralvagonzavod, and Vladimir Yakunin, the head of Russian Railways, have also stated that all companies in this industry in Russia are interested in participating in infrastructure and transportation projects with Iran. Igor Savunkov, an economic expert in Moscow, believes that the lifting of sanctions against Iran will not significantly affect Iran-Russia relations: "Russia has not had much trade with Iran over the years despite the absence of Western competitors in the Iranian market. With the lifting of sanctions, the situation for small and medium-sized companies will worsen because they neither have the necessary technology nor investment capabilities. Only large state-owned companies can continue cooperation with Iran in traditional areas such as nuclear, machine-building, and technical-military." Alexei Pushkov, head of the Russian International Affairs Committee, stated that achieving a comprehensive nuclear agreement between Iran and the P5+1 is more positive than negative for Russia. The six world powers and Iran announced on Tuesday that they had reached an agreement under which Iran committed to limit its nuclear program in exchange for the lifting of sanctions.