Iran’s long term aims to export energy products to European markets and to become a central Asian export hub may put it on a collision course with Russia, according to a recent report by the Soufan Group.
The report outlined the fact that as Iran seeks to reset its relations with the US and Europe and revitalise its energy sector, Iranian-Russian interests could potentially collide around central Asia.
As international sanctions ease, Iran will be able to establish itself as an export hub for central Asia via its sole deep water port of Chabahar.
Russia is currently the key exporter of energy from central Asia, exporting five million barrels of crude oil per day. According to the EIA, 79% of Russia’s oil exports go to European nations, particularly Germany and the Netherlands. However, the recent crisis in Ukraine has made Europe wary of becoming overly reliant on Russia to provide for its long-term energy needs.
On the 20th July 2014 the temporary easing of sanctions against Iran will expire. At this point the P5+1 nations, namely USA, UK, China, Russia, France and Germany, will decide whether to reinstate sanctions or continue to reintegrate Iran into the international market place.
According to the report, “With ongoing negotiations between Iran and the west, Russia’s aggressive foreign policy and Europe’s need to diversify its energy sources, many western and Iranian interests are converging”.
