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Iran, Russia Call for Expanded Economic Cooperation

By Nigar Bayramli October 1, 2024

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Iranian President Masoud Pezeshkian and visiting Russian Prime Minister Mikhail Mishustin held a meeting in Tehran on September 30, 2024. / Tehran Times

Iranian President Masoud Pezeshkian and visiting Russian Prime Minister Mikhail Mishustin have called for the further expansion of regional cooperation to counter what they describe as “US unilateralism.”

“The escalating crimes and provocations of the Zionist regime, which are occurring with America’s direct support and aimed at facilitating the expansion of American presence in the region, pose a common threat to the interests of countries and nations in the area, making increased dialogue and cooperation essential to counter such plots,” the Iranian president said during a meeting in Tehran on September 30, according to the president’s official website.

Pezeshkian emphasized the need to strengthen regional alliances through international organizations like BRICS and the Shanghai Cooperation Organization (SCO) to empower independent nations such as Iran, Russia, and China in their efforts to resist American unilateralism.

He further highlighted the importance of fully implementing joint projects between Iran and Russia, noting that these collaborations would create “substantial capacities for both countries to counter unjust sanctions.”

The president pointed to an agreement aimed at transforming Iran into a transit hub and gas pivot for the region as a prime example of the kind of cooperation that serves both nations’ interests. This, he argued, would foster sustainable development, regional integration, and economic growth.

Together, Russia and Iran account for more than 40% of global gas reserves. Since early 2022, Russia has faced an oversupply of natural gas due to sanctions limiting its exports to Europe following the war in Ukraine. Meanwhile, Iran, the world’s third-largest gas producer, continues to export gas via pipelines to Türkiye and Iraq.

In late June, Iran and Russia signed a deal for the daily import of 300 million cubic meters of gas, which would not only meet Iranian industrial demands but could also position the country as a regional gas hub, potentially exporting to Pakistan and India.

For his part, Russian Prime Minister Mishustin expressed Russia’s interest in deepening interactions with Iran, particularly in energy, industry, transport, agriculture, healthcare, and cultural affairs.

He also stressed the importance of expanding cooperation between the two nations to contribute to the establishment of a new global order that benefits all nations.

“By supporting increased tensions and conflicts in various parts of the world, America seeks to advance its own interests. Independent countries in the region, including Iran and Russia, need to accelerate their cooperation to counter such actions,” Mishustin added.

During his visit, Mishustin met with Iran’s First Vice-President Mohammad Reza Aref, where they discussed the recent gas agreement between Iran and Russia. Mishustin reiterated that this deal would indeed position Iran as the region’s gas hub.

Additionally, Mishustin noted that Iran would become a regional grain hub through the “implementation of agreements on grain exports.” It’s worth mentioning that Moscow has been accused of selling stolen Ukrainian grain to several countries, including Iran, since the start of the war in Ukraine.

The two leaders reaffirmed their commitment to completing the construction of the Rasht-Astara railway section of the North-South transport corridor. This crucial infrastructure will facilitate the movement of goods between India, Iran, Azerbaijan, Central Asia, Russia, and Europe.

In the same meeting, Aref underscored the significance of ongoing infrastructure projects, such as the completion of the Sirik power plant and the second and third units of the Bushehr nuclear power plant. He also highlighted the importance of a $1.2 billion financing agreement for these initiatives.

With current trade between Iran and Russia standing at $2.5 billion, Aref expressed optimism that further efforts could significantly increase this figure, reflecting the full potential of both countries. He also emphasized the benefits of bolstering regional organizations like BRICS, the SCO, and the Eurasian Union.