Russia enhances trade, bilateral ties with Iran to counter sanctions by the West: Report

Amid the ongoing raging war between Moscow and Kyiv, Russia and Iran are reportedly bolstering their ties in an attempt to counter Western sanctions imposed against the two nations. According to a report published in the Wall Street Journal (WSJ), Iran and Russia have grown closer than ever before as the global isolation has pushed the two American adversaries into greater commerce and military collaboration. It further noted that both countries are subject to harsh western sanctions and often express strong opposition to the US-led international system.

"Until this year, their relations had been weighed down by opposing agendas in Syria, by Iran’s historic suspicion of foreign interference and by Russia’s historical role as the dominant power in Central Asia and the Caucasus," the WSJ reported. It further noted that a stronger Russia-Iran alliance would assist both nations in reducing the impact of Western sanctions by opening up new markets for their goods and increasing military cooperation. Reportedly, the bilateral trade between Moscow and Tehran this year recorded a rise of 10%. According to the Russian government, trade between the two nations increased by 80% to $4 billion in 2021.  

Russia seeks Iran's help to make up for its declining commerce

As a result of its isolation from the West, stringent sanctions, and supply issues, Russia has been increasingly turning to Iran in an effort to make up for its declining commerce with Europe. Meanwhile, Western diplomats believe that Russia intends to use Iran as a backdoor to circumvent sanctions and sell oil if the Iranian nuclear deal is renewed. "Iran is a good partner in this endeavour. Russia has a difficulty and Iran has a capability," Politico reported citing one of the Western diplomats. 

It should be noted here that Russia has turned towards the Middle East, Africa, and Asia for commerce and political assistance since the onset of the war in Ukraine. According to reports, Russia has also looked to Iran as a source of expertise in order to adapt to the new sanctions imposed by the US and other western nations. Russia is looking to learn from Iran's expertise in areas like evading banking restrictions and maintaining aircraft without access to widely available western parts. Notably, Russian President Vladimir Putin also held a meeting with Iranian counterpart Ebrahim Raisi in Tehran on July 19. 

Image: AP