Russia-Iran Is the 'Anti-Western Solidarity' with No. 1 and No. 2 Gas Deposits

Russian President Vladimir Putin visited Iran and signed a $40 billion local natural gas development project, Iran's state-run IRNA news agency reported on the 19th. Analysts say that Russia and Iran, the world's first and second largest natural gas reserves, have strengthened their "anti-Western energy solidarity" by weaponizing natural gas.

According to IRNA news agency, Putin agreed with Iran to jointly develop gas fields in eight southern regions of Iran by Russian state gas company Gazprom and Iran's state-run oil company (NIOC). According to IRNA, cooperation between the two countries will cover the installation of liquefied natural gas (LNG), gas pipes, and the production of crude oil products.

"Iran and Russia should always be wary of Western deception," said Ayatollah Ali Khamenei, Iran's supreme leader who was prevented by Putin. "The two countries are pursuing mutual interests through long-term cooperation." It is interpreted that Iran is trying to strengthen its relationship with Russia to increase its bargaining power, while Russia is trying to join hands with Iran, which is under economic sanctions, to face the U.S. and other Western countries together.

Gazprom is Russia's largest gas company that operates a "Nortstream 1" gas pipeline connected to European countries such as Germany. Russia, which suspended the operation of the Nord Stream 1 gas pipeline from the 11th to the 20th of this month, has been pressuring Europe, which is suffering from energy shortages, suggesting the possibility of permanent suspension. President Putin said on the 20th, "We will restart the gas pipeline in a timely manner," but added, "One of the two turbines operating in Nortstream 1 will fail, and the supply of natural gas will be half of the current amount." The plan is to further reduce the supply of natural gas through Nortstream 1 last month from the previous 40% reduction.

European countries are preparing to reduce natural gas consumption in case Russia stops or reduces fuel supply. According to Bloomberg News, the European Commission (EU) has included a plan to reduce natural gas use by 15% in its gas-saving plan for this winter. Bloomberg predicted, "If the supply and demand of fuel deteriorates, the gross domestic product (GDP) in the EU could fall by 1.5 percent."

It is also noteworthy that Putin's visit to Iran took place immediately after U.S. President Joe Biden's trip to the Middle East (13th-16th). President Biden, who strongly criticized Saudi Arabia over the murder of Saudi dissident journalist Jamal Khashoggi, visited Saudi Crown Prince Muhammad bin Salman to ask for more oil production, even taking criticism that it was "a diplomacy that abandoned human rights."The family has been criticized for returning empty-handed. On the other hand, President Putin reaffirmed his cooperative relationship with Iran and secured additional natural gas production capabilities to enjoy the "compared effect" with President Biden.

President Putin's visit to Iran was also accompanied by President Recep Tayyip Erdogan of Turkiye (Turkey), a NATO member. Erdogan has maintained close ties with Russia even after the Ukrainian war.

Date: 2022-07-21

Reporter: 정새울