Russia faces humiliation at the hands of Tehran

Russia makes the most of being the world’s number one producer of natural gas, and second only to Saudi Arabia as a supplier of oil. However, though Saudi’s resources certainly make it strategically important, its political influence is limited nonetheless. Why should Russia be any different? In any case, is Russia capable of maximising the benefit of its natural wealth? Two-thirds of its gas comes from just three fields that are in decline. Many billions of dollars need to be invested but Russia has failed to create conditions that will attract foreign capital.

Russia’s relative poverty and its reliance on oil and gas help to explain why it values its blossoming economic links with Iran. Its stake in building Iran’s first nuclear reactor at Bushehr is worth $1 billion, which is more than small change to Moscow. Tehran has lured the Russians into a dependency that distorts their political judgment.
Sunday Times