Possible Iran-Russia oil deal ruffles feathers in Washington
Reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that could boost Iranian oil exports, prompting harsh responses from Washington, which says such a deal could trigger new US sanctions.
So far, talks are progressing to the point that Russia could purchase up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods,聽
"We are concerned about these reports and Secretary (of State John) Kerry directly expressed this concern with (Russian) Foreign Minister (Sergei) Lavrov鈥β� If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions," Caitlin Hayden, spokeswoman for the White House National Security Council, told聽(Related article:聽)
Russian purchases of 500,000 bpd of Iranian crude would lift Iran's oil exports by 50% and infuse the struggling economy with some $1.5 billion a month, some sources say.聽
Since sanctions were slapped on Iran in July 2012, exports have fallen by half and Iran is losing up to $5 billion per month in revenues.
In the meantime, a nuclear agreement reached in November with Iran and world powers is in the process of being finalized, and the news of the potential Russian-Iranian oil swap deal plays to the hands of Iran hawks in Washington who are keen to seen the November agreement collapse.
罢丑别听聽is a six-month deal to lift some trade sanctions if Tehran curtailed its nuclear program. Technical talks on the agreement began last week.
Under the terms of the tentative November nuclear agreement, Iran will be allowed to export only 1 million barrels of oil per day.
In mid-December, Iranian oil officials indicated that they hoped to resume previous production and export levels and would hold talks with international companies to that end. (Related article:聽)
This announcement sparked an immediate reaction from聽, which has threatened oil companies with 鈥渟evere financial penalties鈥� if they resume business with Iran 鈥減rematurely鈥� following the six-month agreement reached in Geneva.
There are plenty of figures in Congress鈥擱epublican and Democratic alike鈥攚ho are opposed to the deal. The key 鈥溾�� in US Congress, South Carolina Republican Lindsey Graham, has described the deal as 鈥渟o far away from what the end game should look like鈥�, which should be to 鈥渟top enrichment鈥�.
The opposition in this case believes any talk between Tehran and Western oil companies is premature because they are convinced that we won鈥檛 see a comprehensive resolution after the six-month period, and that sanctions will be laid on stronger than ever before.
Original article:聽
