25 Oct 10, CEIP: Iran: A View From Moscow
Iran’s emergence as a rising power is straining its relations with Russia. While many outside observers assume the two countries enjoy a close relationship, in reality it is highly complex. Although Iran and Russia have strong economic and military ties, Moscow is increasingly wary of Tehran’s growing ambitions.

Offering a view from Moscow, this paper explores how an empowered Iran threatens Russia. Home to the world’s second-largest natural gas resources—behind only Russia—Iran can severely cut into the profits of Russia’s state controlled energy company, Gazprom, by selling more gas to Europe. And a nuclear Iran would significantly diminish Russia’s influence in the wider Caspian region that includes the Caucasus and Central Asia.

Iran’s relationship with Russia has evolved. While Moscow did not want to strengthen a potential regional rival, it was desperate in the past to save its crumbling defense industry and Tehran seemed to offer a large and willing market.

Still, the relationship is growing more contentious on both sides. After Iran failed to agree to a nuclear deal with the international community that was brokered by Moscow last year, it continued to use Russia as a foil to undercut U.S. policies. Meanwhile, Russia—as it resets relations with the United States—has backed economic sanctions against Tehran and supported a United Nations Security Council resolution blocking heavy weapons exports to Iran....
Complete 44 page paper at the link.