Iran oil sector recovering from international sanctions
Iranian President Hassan Rouhani met with Russian Prime Minister Dmitry Medvedev on Monday in a bid to further develop a warmer relationship that has recently been strengthened by both countries’ involvement in the war in Syria.
At the outset of the visit, Rouhani said “I hope that a new turning-point in the development of our relations will be reached.”
Reuters reports Russian investment in the Iran oil sector and Iranian arms purchases are likely to be on the agenda of the Iranian leader who is heading into a re-election campaign prior to the May 19th vote.
“Rouhani desperately wants to finalise at least one deal based on new petroleum contracts before the election,” Reza Mostafavi Tabatabaei, an energy analyst and president of London-based ENEXD told Reuters. ENEXD is involved in the oil and gas equipment business in the Middle East.
Bogged down by the wait for US approvals, western companies like Total are holding off on investing in Iran. Mostafavi Tabatabaei says “Rouhani’s only chance is Russian companies that might sign a deal before the election.”
The US and Saudi Arabia are concerned about the cooperation between Russia and Iran. US President Donald Trump has said he is interested in working more closely with Russia, but has made a number of harsh statements about Iran.
Rouhani and his economic team are expected to sign about a dozen memorandums of understanding during the visit, which will include talks with Putin on Tuesday.
