Russo-Iranian energy relations: navigating the tension between competition and cooperation
Abstract
Western pressure has necessitated Moscow to restructure its energy exports towards Asia. This development has revealed a weak point in its relations with Tehran: the two are in fact competing for consumers in a geographically restricted market. A superficial glance at the situation might indicate that Moscow is paradoxically strengthening its economic competitor but other factors may suggest otherwise. Russia is investing in Iran’s oil and gas sector in an attempt to decrease antagonistic potential in their bilateral relations driven by the competition for shared export markets. Furthermore, concerns that Europe may substitute Russia with Iranian energy exports have driven Moscow to pursue a hedging strategy. Moreover, the Kremlin considers Iran a suitable partner for swap deals. Last but not least, Tehran’s decades-long experience in circumventing sanctions proofs beneficial for Russia.
Supporting agencies: The study was not sponsored
About the Authors
A. Vogel
Vienna School of International Studies
Austria
Austria
Amin Vogel
1040
15A, Favoritenstrabe
Vienna
R. O. Reinhardt
MGIMO University
Russian Federation
Russian Federation
Roman O. Reinhardt, PhD in Economics, Associate Professor
Department of Diplomacy
119454
76, av. Vernadsky
Moscow
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Review
For citations:
Vogel A., Reinhardt R.O. Russo-Iranian energy relations: navigating the tension between competition and cooperation. International Business. 2023;(1 (3)):40-47.
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