Russia is willing to step in to help Iran export its oil while the Middle Eastern country is struggling to keep the oil flowing while pressured by sanctions levied by the United States.
Iran’s budget counts on
raking in around $30 billion from oil and gas
condensate exports.
Iran was holding out hope
that Europe would have its Instex European payment system in place that would
allow Europe to continue purchasing Iranian oil, but the system is not yet
running, leaving Iran in tight
spot when
it comes to getting its oil out of country.
Russia, however, is happy to
help, Russian Deputy Foreign Minister Sergei Ryabkov said on Friday according
to Reuters. It would also be willing to help with Iran’s banking sector as
well, as Iran is finding it difficult to process payments.
The dynamic between the
United States, Europe, Russia, and Iran is an interesting one, given the fact
that some EU states have been irritated with the United States meddling in its
affairs as it looks to purchase cheap Russian gas through the controversial
Nord Stream 2 project. If Europe is unable to get its payment system off the
ground, Russia could facilitate the transactions, making exports possible
despite the sanctions. Russia may then find somewhat emboldened EU members who
are willing to thumb their nose at the United States when it comes to Nord
Stream 2.
If Russia’s help is
successful, Iran would be able to export substantial amounts of oil to Europe,
Russia would be able to export more gas to the EU, and Europe would be able to
purchase both low-cost oil and gas. The United States, on the other hand, would
find it near impossible to restrict Iran’s oil exports to zero, and would find
it tough going to put the kibosh on Nord Stream 2.