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    Middle East
     May 6, 2008
Page 2 of 2
Energized Iran builds more bridges
By M K Bhadrakumar

Sobolev's Iranian counterpart, Saeed Jalili, said the talks were "positive and constructive". Sobolev brought a letter from Russian President Vladimir Putin to Ahmadinejad assuring the latter Moscow "confirms the principled position in its relations with Iran, and that its policy does not depend on who is in power at any moment". Ahmadinejad responded, "Iran and Russia are two major powerful countries, and cooperation between our states in settling various problems will serve the interests of the Iranian and Russian nations as well as regional and international security". He said the two countries could play "an efficient role in establishing a new model of international relations".

However, Sobolev's consultations did not quite proceed the way

 

Moscow expected. The gas cartel idea has run into difficulties. The Russian media reported that the ministerial meeting of the Gas Exporting Countries' forum, which was scheduled to be held in Moscow on June 24, stood postponed. Moscow wants engagement with Iran within a loosely held gas alliance and is unwilling to commit itself to "excessive obligations", as Russian newspaper Nezavisimaya Gazeta reported on the April 28 meeting in Tehran.

To quote the daily, "Iran insists on the soonest possible formation of the new cartel [so as] to resolve its political problems ... [On the other hand], Russia, which is the largest gas supplier to Europe, builds its relations with EU [European Union] countries on the basis of long-term agreements and prices tied to world oil prices. It has no intention of changing its export scheme or coordinating its gas prices with other participants in the cartel."

Iran has its own plans
Iran pitches for a gas cartel with regulatory mechanisms on quota production and pricing, whereas Russia prefers a networking by gas producing countries with the accent on market sharing and transit routes. Evidently, Moscow is nervous that Iranian gas could revive the Nabucco gas pipeline supported by the European Union, just when, thanks to its deft maneuverings over the past year by projecting the rival South Stream, it thought it had all but killed the US-backed project. Again, the Iran-Switzerland gas deal means the early commissioning of the Trans-Adriatic Pipeline (TAP), a joint project between Swiss company EGL and Norway's StatoilHydro. In short, Iranian gas could find its way to Europe through these two pipelines in the near future - Nabucco and TAP.
Moscow would not like such a turn of events. As Tomberg put it, "Tehran has been pursuing a more energetic gas policy, indicating its readiness to cooperate with the European Union ... This can be interpreted as the struggle for the vast - some say inexhaustible - European gas market ... Competition on the gas market will soon affect prices ... Meanwhile, Iran is playing on the EU's desire to ease its dependence on Russia and save money." Tomberg concludes, "Iran and Russia should probably not compete against each other but join hands on the gas market ... Moreover, there could be an agreement under which Russia will continue to supply gas to Europe, while Iran will export its gas to the East."

But will the Iranians heed such advice? It is the million-dollar question. The Iranians want to keep all options open. In any case, why should they stay out of the European market? Energy exports would be the bridge that facilitated Iran's all-round integration with the Western world. The Iranian elites know that the "East" will not and could not compensate Iran for forgoing the European option.

Equally, Tehran is frustrated with the presumptuousness that underlines the thinking behind these potential eastern partners, who opt for selective engagement of Iran rather than having the willingness to offer comprehensive strategic cooperation with Iran based on shared concerns and interests in a multipolar world.

Sobolev tried to inject some much-needed vitality into Russian-Iranian relations by discussing "military-technical cooperation" and by giving a clean chit to Iran's nuclear program. But that may not be enough. Meanwhile, the negative stance by Russia and China with regard to Iran's application for full membership of the Shanghai Cooperation Organization (SCO) threatens to become an irritant.

The Russian dilemma is that it does not want to go the whole hog with Iran, as that would complicate Russia-US relations. Interestingly, on Friday, apart from the "Iran Six" foreign ministers, London also hosted consultations involving Russia and the US over Kosovo and the Middle East situation. Meanwhile, Russia-US consultations over the US's missile defense deployment in central Europe are continuing and new tensions have appeared in Russia-Georgia relations with the North Atlantic Treaty Organization openly backing Tbilisi. Moscow is also carefully marking time until a new administration settles into Washington next year.

Nonetheless, the competing energy security interests of the EU, Russia and China were reflected at the London meeting of the "Iran Six" last Friday. Plainly put, no one wants confrontation with Iran. Mottaki said Iran would soon have its own "package of proposals" to resolve all regional and international problems, including its nuclear program. In essence, after having thwarted the US's campaign to isolate it, Iran is now shifting diplomatic gear to ensure that its integration with the international community becomes irreversible. It looks beyond the lame-duck George W Bush administration and is judging the mood in the US correctly.

According to a major survey released in Washington last Wednesday by the prestigious Foreign Affairs journal (see Economic woes take US center stage Asia Times Online, May 2, 2008) , energy costs are the number one foreign policy concern for seven out of 10 American respondents; the economy has pushed "terrorism" into second place. A large plurality of opinion favors effective American diplomacy to try to establish better relations with Iran. Energy security outpaced all other concerns by a long shot. The survey underscored that American opinion is connecting energy policy to national security issues in an unprecedented way.

M K Bhadrakumar served as a career diplomat in the Indian Foreign Service for over 29 years, with postings including India's ambassador to Uzbekistan (1995-1998) and to Turkey (1998-2001).

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