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Iran
Politics
Energy - United Nations - USA Europe
E'temad, Iran
27-Nov-2015
"Strategic document of Iran-Russia relations is being drafted"  
On November 23, the reformist E'temad reported: "Iran and Russia, two neighbours or two strategic partners? Over the past four decades, and after Iran's Islamic Revolution, the answer to this question has sometimes optimistically weighed in favour of strategic partnership, and often pessimistically towards the Iranians choosing sides but expediency for the Russians. Conditions in the region and in Iran, which for the first time in the past decade have come out of the shadow of nuclear accusations, have opened a new vista for Iran/Russia ties. The Islamic Republic of Iran's ambassador to Russia, Mehdi Sana'i, is extremely hopeful of the economic and political prospects of this vista. The interview with Mehdi Sana'i took place during the days leading up to Vladimir Putin's presence in Iran after eight years. Sana'i, who exercises diplomatic caution in choosing his words, spoke more of the economic and business opportunities ahead of the two countries in the post-Joint Comprehensive Plan of Action (JCPOA) era a! nd the bilateral ties that are becoming permanent. Iran's number one man in our embassy in Moscow believes that the Russians' outlook towards Iran is strategic rather than tactical, and Iran's upper hand in the regional equations, together with its victory in the nuclear negotiations, have made Russia more aware of Iran's power. The interview is as follows:

"Q: Two years have passed since the 11th government came to power and the relative change in Iran's approach towards foreign policy. However, it is only during the past three months, after the JCPOA, that we have been witnessing visits by high-ranking European and Asian officials to Iran. What is the political gravitas of Vladimir Putin's presence in Iran at this juncture in time?

"A: Vladimir Putin's trip to Iran at this point is for a number of reasons, one of which is the conference of the presidents of gas exporting countries, which has been held in Tehran. The Russian president is coming to Tehran at the invitation of his Iranian counterpart, Hassan Rouhani. Naturally, this trip is not merely multilateral and part of it will be dedicated to bilateral counselling such as meetings with the country's high-ranking officials. In addition, signing various documents of cooperation is also on Putin's agenda in this trip. Ties between Iran and Russia are expanding in earnest in every sector. Relations in political, security, economic, business, and even scientific and educational sectors are expanding, and both presidents have full control and supervision over this relationship. Even though the two presidents have not undertaken bilateral trips, they have met six times over the past two years. The meeting this coming Monday between the two p! residents will be their seventh meeting over the past two years. Tehran -Moscow ties have entered a new period, the most important characteristic of which is permanency. In other words, both countries have entered a permanent era of ties. At this point, the meeting between the two presidents is of extreme importance. On the other hand, Russian/Iranian regional cooperation has also entered a new phase, which makes counselling between the two countries' leaders at this point in time, absolutely necessary. In view of the above-mentioned points, one can say that Putin's trip to Iran is of the highest significance.

"Q: What topics will be covered during the bilateral meetings that Putin will hold during his one-day trip to Iran? At present, what are the most major hurdles that we can expect to be removed in the light of this trip?

"A: Despite the resolve of both countries' officials to expand ties, which has existed over the past two decades, relations between Iran and Russia have also experienced obstacles. In fact, in all these years, ties between Tehran and Moscow have had one characteristic, which was political and international growth, but economic and business ties have not progressed hand-in-hand with the former. In other words, there has been a kind of impermanence in political, regional, and international ties, and imbalance in economic and business ties. After the 11th government came to power and by the end of 2013, we identified these hurdles and divided them into four groups:

"Lack of resources: in recent years, there were not sufficient financial sources to provide for projects between Iran and Russia. For example, relations between Iran and China have naturally and automatically escalated because China is an exporter of goods and we are an exporter of energy, which means that sources for trade are thus created. But Russia and Iran were not in such a situation because both countries export energy.

"Problems in the settlement of bank accounts: this problem was created after the sanctions on Iran and it has been effective in reducing the level of trade between Iran and Russia in the years 2011 to 2013. The problem of business tariffs: so far, tariffs for Iran's exported goods to Russia have been high, and naturally, Iranian exporters have had less power to compete with other countries. The documents that have been prepared during this trip and are ready to be signed, are documents that have been proposed over the past several years but have only been finalized in the last two years. Several of them have been prepared and finalized only in the past two years. Furthermore, over the past two weeks and especially after the joint commission between the two countries was held, a great deal of effort was undertaken to collect and finalize these documents.

"Difficulty in obtaining visas: this was an obstacle to trouble-free visits by people interested in science, culture, business, and investment from both countries.

"The aim behind the preparation of these documents is to remove the aforementioned obstacles and to find a way to increase economic, political, and security cooperation between Iran and Russia. In fact, these documents will provide the necessary basis for increased comprehensive cooperation between the two countries. Very soon, an agreement for facilitated visas between the two countries will also be signed that will influence all these points. Another document is the document for investment between the two countries, which is also of extraordinary importance. Another document is for health and medical cooperation between the two countries, which has been prepared. Yet another important document that may be signed during this trip is credit that Russia has considered for the projects between the two countries, and this will be signed within a framework that shall be defined. On the whole, we are hopeful that the financial sources for projects between the two co! untries will be provided and their realization will be facilitated. It is anticipated that a contract will be signed to transform the railway connecting Garmsar to Incheh-Borun into an electric railway, and for the construction of a thermal power station.

"Q: All the documents you mentioned are documents for economic cooperation rather than targeted official documents for political and security cooperation.

"A: The document relating to visas will cover all areas, and the remainder of the documents are related more to economic and business sectors.

"Q: Yes, but it seems that Putin's first ever presence will lead more to economic achievements?

"A: The main obstacles facing cooperation between the two countries are in the economic and commercial areas. Accordingly, in spite of the fact that bilateral ties are strategic to a degree, the level of trade between the two countries is not compatible with this kind of relationship.

"Q: Putin is travelling to Iran at a time of regional crises. At present, Iran and Russia are cooperating with regard to certain regional issues. Has any need been felt at this stage for a security or political agreement or the signing of a strategic document between the two countries?

"A: All these topics will be examined and discussed in the meetings and negotiations that have been anticipated. Ties between Iran and Russia have many strategic aspects, and this may need a strategic document between the two countries, which is also being prepared. Both countries are counselling over the signing of a strategic document for long-term cooperation that will define relations for the next 20 years.

"Q: Ruhani was a well-known figure to the West's news and political circles, who was elected as Iran's president. Contrary to certain predictions that Iran will become closer to the West and efforts to create a balance in our relations, we have witnessed deepening ties between Tehran and Moscow over the past two years. Was it the existence of joint regional interests that pushed Iran towards increasing cooperation with Russia, compared with the West?

"A: There is no doubt that the 11th government was seeking to eliminate any tensions with the West, and this was evident in the nuclear agreement. This agreement demonstrated the government's efforts to eliminate tensions and reduce the country's costs, in addition to showing the world our diplomatic capability and foreign policy capacity. This agreement was praised as a successful diplomatic activity. The fact that the 11th government is seeking to eliminate tensions with the West and reduce problems is a correct assumption but it is not particularly accurate to say that this strategy will be at the cost of damaging our ties with the East or the reduction of ties with Russia. Our country's high-ranking officials have had a long-term approach concerning ties with Russia for a very lengthy period of time, and strengthening ties with China, Russia, and Indian, is one of the priorities of the 11th government's foreign policy. When the 11th government began its tas! k, I was in the Islamic Consultative Majlis and this was part of the plans of the 11th government's foreign minister. Intelligent foreign policy comprehends that a major part of global developments is focused on the East, and the role played by the East in global developments has not only not reduced but actually increased. Accordingly, Messieurs Rouhani and [Mohammad Javad] Zarif emphasized from the very beginning that we need long term and lasting ties with Russia, so that the relationship will not be influenced by a third factor. One of the difficulties of the Iran-Russia ties has been the impact of a third factor called the West, and this level of influence must be reduced to a minimum. The nuclear agreement and new conditions will help prepare this long-term outlook towards Russia.

"Q: Do you not believe that we have put all our eggs in Russia's basket over the years?

"A: No, Iran is a powerful and independent country, and as admitted by Western and Russian analysts, the resolution of regional problems will not be possible without Iran's presence. Iran has always acted within the framework of its national interests and the government's plans consist of increasing foreign policy capacities and taking advantage of various baskets. However, as far as regional issues are concerned, the nature of the West's presence in this region and their interference in certain regional matters did not result in the realization of declared objectives, and we have even witnessed an escalation of crisis conditions. An example of this claim is the current situation in Afghanistan, Iraq, Libya, and Syria. Iran and Russia have had an independent approach in relation to regional issues, and maybe it is the same independent approach that has created a rapprochement between them. My interpretation is that Iran and Russia ties are closer together in st! rategy rather than tactics. The nuclear agreement showed that our foreign policy has a comprehensive and strategic outlook, but as our great neighbour, a member of the UN Security Council (UNSC), and for numerous other reasons, Russia is a country, concerning which Iran has a long-term outlook.

"Q: As far as Russia is concerned, we have both good memories and bad ones. After the delay in completing the Bushehr power plant, the delay in the delivery of the S-300 missiles, and the approval of Iran's sanctions by Russia in the UNSC, should we once again trust the Russians and engage in weapons and trade contracts with them?

"A: There is no doubt that at certain points in time, Russia has made decisions under the West's influence, which have had a negative impact on Iranian mentality concerning the Russians. But these events happened at a time when Resolution 1929 had already been approved against Iran, and the international psychological climate had been provoked against us. In addition, there was a pro-West president in power in Russia who cancelled the contract for the S-300s. Currently, Russia's approach towards this matter has modified, a new contract has been entered into, and the process of the delivery of the S-300s has come into motion. As far as the Bushehr power plant is concerned, the Russians are not the only ones to blame. The Bushehr power plant had been abandoned midway by the Germans and the Japanese, it had been bombed by Saddam's regime, and it was not as if we put this power plant up for an international tender and Russia was chosen out of 20 countries. At the t! ime, Russia was our only option. There were delays in the construction of the Bushehr power plant, just as many domestic projects that are executed with delay. Another reason for this delay could also be attributed to procrastination by Russian technicians, and to the sanctions.

"A spare part that was transferred for the power plant had to go through several inspection gates, and on many occasions, sabotage operations were discovered and defused. For now, we have to take note of the fact that a power plant has been built and it is working for the country's electricity sector. Russia's experience in constructing power plants has been successful, and currently, Rosatom is one of the most successful international companies that is building 24 power plants in various countries. At present, one of the projects that is being negotiated with the Russians, and the final agreement for the construction of two sections of it has been reached, is the construction of thermal power plants! . Towards the end of the 1960s and the 1970s, which in my opinion is a historic period in Iran/Russia ties, the Dasht-e Moghan Dam and two power plants were built by the Russians. Consequently, we must not restrict ourselves in interacting and cooperating with various countries. However, Iran is also growing as far as industry and technology is concerned, and we have gained considerable progress.

"Q: What gains has the JCPOA had for the not particularly bilateral economic future relationship between Iran and Russia?

"A: New conditions in the post-nuclear agreement era have created an exceptional opportunity for Iranian exporters. In addition to the efforts undertaken to expand economic ties between the two countries, one of the measures undertaken has been to remove the obstacles facing Iran's exports to Russia and obtaining permits for Iranian exporters. We have always exported fruits and vegetables to Russia. Until 2014, Russia imported close to 40 billion dollars of agricultural products from various countries. After the sanctions imposed by the West on this country, Russia introduced bans on imports of agricultural products from some of these countries, and it has begun the process of self-reliance and domestic production. This situation has created suitable conditions for exports by Eastern countries to Russia, and we also took advantage of the situation and extensive efforts were undertaken to obtain permits for Iran's exports to Russia.

"The permit to export aquatic products, as the first package for 18 big Iranian companies was issued, and the process of exporting fish, prawns, and other seafood products has begun. Dairy and livestock products are also waiting for export permits, the main stages of which have been completed, and the elimination of certain internal problems in the production of dairy and livestock products can be effective in speeding up the process of the issuing of permits. As far as fruit and vegetable are concerned, tens of Iranian businessmen have participated in Russian markets. Over the past two years, we have strengthened inter-province relations between the two countries, and 13 trade and economic delegations from Iran's provinces have had meetings and counselling with Russian governors.

"We have also exported foodstuff and we have very good producers. Another six countries active in the production of dairy and livestock products have entered the list of exporters to Russia and they are waiting for obstacles to be removed and final permits to be issued. Even if we are able to garner 10 per cent of a $40 billion market, it will be a significant figure. However, the country's capacity exceeds this figure, and if there had been correct management, we would have been able to take over a large part of the Russian market ourselves. Recently, there has been more realistic actions undertaken in relation to the problem of tariffs.

"Many Iranian exporters were waiting for preferential tariffs from Russia, even though Russia has no preferential bilateral tariff agreements with any country, and it only has preferential tariffs with the Eurasian economic sector, which includes four countries. We have begun negotiations with this Customs Union and we are hopeful that an agreement will soon be signed between Iran and the Eurasian Economic Union so that we can use the latter's economic tariffs, which are extremely low. For example, an example of tariffs for aquatic products, which we recently received from the union, is between four to eight per cent, which is much lower than other cases. On the whole, a suitable and historic opportunity has come about for the export of concrete, medicine, tiles, dried fruit and nuts, vegetables, and even in other sectors such as the export of technology and petrochemical products. We are hopeful that both exporters and those who are in charge of managing expor! ts will perform better.

"Q: In recent months, trips by European political and business officials to Iran have increased. How far has this kind of political and commercial rapprochement between Iran and Russia's rivals caused concern for Moscow and made them more enthusiastic to expand their ties with Tehran?

"A: There are individuals in Russia who are promoting the mentality that if Iran modifies its relationship with the West, it will no longer have priority for its ties with Russia, or that if Iran enters the oil market and increases its oil exports, this will be detrimental to Russia. The major politicians and decision-makers in Russia have a positive outlook towards this matter, and the nuclear agreement has in fact facilitated conditions for expanded cooperation between the two countries. In the comments made after the nuclear agreement, Putin also referred to the same issue and the fact that the negative impact of the third factor will lessen. I believe that in the light of these new conditions, a new constructive approach has emerged on the part of Russian decision-makers concerning relations with Iran. The Russians have admitted to the reality that the new situation has given Iran a more open hand in relation to foreign policy and has lessened restrictions.! However, the Russians regard this as an opportunity to expand bilateral ties. On lower levels, Russian companies and firms also feel that they are now in a more competitive climate and have to act more earnestly. Approximately one month ago, the Russian energy minister came to Iran accompanied by 50 Russian companies, and similar kind of counselling took place. Iran is also interested in Russian companies that are planning to enter the Iranian market to feel this sense of competition. In recent days, and before Putin's trip to Tehran, many representatives from Russian companies came to Tehran and they are engaged in counselling with their Iranian counterparts.

"Q: Even though more than two years have passed since DA'ISH began its activities in the region, Russia only attacked DA'ISH positions for the first time three months ago? What is the reason? Iran has been concentrating its efforts to control DA'ISH since a year and a half ago, but the Russians entered the battlefield with great delay.

"A: There are many reasons for this, but one can point out two main reasons. The first is that the West's failed approach to resolve the Syrian crisis unilaterally became more obvious, and it was made completely clear that the West's military presence in Syria has led to no results. The areas under the control of DA'ISH have expanded more than ever before, and as far as inter-group competition is concerned, DA'ISH has taken over the others. In fact, Russia felt that it has become evident to all that the current process will be a long-term war, as a result of which we shall witness a rising trend in terrorism. The second reason was that the danger became more obvious to everyone including Russia. According to unofficial published figures, several thousand Russian language forces are fighting for DA'ISH; an issue that acted as an alarm bell for Russia. In fact, Russian officials have decided that instead of fighting in Russia, they should go to Syria and fight DA! 'ISH. This presence is within the framework of defending Russia's own national interests. There are also other reasons, one of which can be that Russia has seen conditions to be ripe for ruling out the unipolar and unilateral order, for reviving its influence in the Middle East, and for a more serious engagement in the process of resolving global issues.

"Q: What is Iran's status within Russia's foreign policy apparatus? Are we merely a neighbour or a strategic partner, or maybe an occasional colleague in certain joint cases?

"A: It is my opinion that as far as the Russians are concerned, Iranians are a great nation with an ancient and historical civilization. The Russian society's general outlook towards Iran is positive. There are two weak points in this respect. The first is that there is little knowledge in Russia concerning contemporary Iran, which is a two-way problem because there is also little information in Iran concerning contemporary Russia. The second point is that certain Russian media, which were influenced by the negative global publicity against Iran at the time of the previous government, have become partners in reflecting this Iranophobia, and have often created negative mentalities among various layers of Russian society. This outlook is being modified even though every country pursues its own national interests, and Russia's outlook towards Iran is within the framework of its own national interests. Nevertheless, on the whole, Russia's approach towards relations! and cooperation with Iran is constructive, and the Russian officials' comments and standpoints indicate that they are seeking a long-term relationship with Iran. At present, Iran's situation in the region and internationally has undergone positive changes, and there have also been deep changes in Russia's approach towards foreign policy issues, compared with four years ago. These days, Russia regards ties with Iran as less of a tool and more of a permanent relationship."
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