In Classic Soviet Speak: «On the Treaty of Comprehensive Strategic Partnership Between the Russian Federation and the Islamic Republic of Iran»
CONTRACTING PARTIES SHALL… | NORTH-SOUTH CORRIDOR, ENERGY & WESTERN SANCTIONS
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“Barbershop Whispers….Russia (BWR)” begins with “My Takeaways” on the main topic, followed by a discussion on the main topic. The last two BWR sections are “Follow-ups” on previous publications and “Quick Bites” on emerging events.
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In last week’s BWR, I discussed Russia’s 2025 outlook. Russia continues to be consumed by Putin’s war. What will be the most important drivers that impact Russia in 2025?
In this week’s BWR, I discuss the recently signed «Treaty On the Comprehensive Strategic Partnership Between the Russian Federation and the Islamic Republic of Iran». What is in it and what does it mean?
Next week I will discuss Russian and Chinese influence in Latin America. This is particularly important given President-elect Trump’s nomination of Marco Rubio as Secretary of State and other Latin American experts in senior positions.
Takeaways
CONTENTS—Notable was the absence of a joint defense clause, as in the case of North Korea and Belarus. The agreement was a basic roadmap for deepening the economic relationship between the two countries and creating a sanctions-free environment.
COMMERCE—The emerging North-South Corridor and energy collaboration were prevalent in the agreement.
SIGNIFICANCE—Russia and Iran have many bilateral agreements and cooperate in organizations such as BRICS and OPEC+. This agreement will require follow-up agreements and execution, and more importantly, with other outside parties, particularly as it relates to Western sanctions and the North-South Corridor project.
In Classic Soviet Speak: «On the Treaty of Comprehensive Strategic Partnership Between the Russian Federation and the Islamic Republic of Iran»
CONTRACTING PARTIES SHALL… | NORTH-SOUTH CORRIDOR, ENERGY & WESTERN SANCTIONS
The Russia—Iran relationship is founded on deep-seated anti-Western grievances, collective sanctions evasion knowledge, and their growing economic dependence on China.
Last week, Russia and Iran signed the “Treaty on Comprehensive Strategic Partnership between the Russian Federation and the Islamic Republic of Iran (English Language Version).” The 20-year agreement is one of several bilateral agreements signed by the two most Western-sanctioned countries in history. It represents a continuation of Russia’s effort to create a separate global economic order, financially and politically underwritten by China, independent of Western influence and resistant to Western economic and technology sanctions.
The agreement (Russian Language version) consists of a preamble and 47 articles published in Russian, Persian, and English. The preamble begins with,
“the objective process of forming a new fair and sustainable multipolar world order based on the sovereign equality of states […] the rule of international law in accordance with the Charter of the United Nations, including refraining from the threat or use of force, non-interference in the internal affairs and respect for the territorial integrity of both States…”
It highlights their mutual pursuit of a multipolar world order and, ironically, the duplicity of “respect for the territorial integrity of both States.” Obviously, President Vladimir Putin is not inclined to fabricate territorial claims on former Russian-controlled territories in Persia as he did with Ukraine.
The agreement's preamble also references earlier agreements between the CCCP and Iran, dating back to 1921, and, notably, the “Treaty on Commerce and Navigation between the CCCP and Iran,” dated March 25, 1940.
The document’s articles address a range of “deepening collaboration” in areas such as education, security, energy, and commerce. It also emphasizes the parties’ cooperation and mutual interests within the Shanghai Cooperation Organization and the Eurasian Economic Union (Article 14). Notably, unlike Russia’s agreement with North Korea and Belarus, it does not include a joint defense clause.
Transportation & Energy
The agreement focuses more on economic and energy cooperation, as evidenced by Articles 19, 21, and 22. These articles focus on sanctions countermeasures, the North-South Corridor (NSC), and energy initiatives. They outline the roadmap through which Russia and Iran aim to expand trade and commerce while countering Western sanctions. For example, Article 19.2 states,
“Contracting Parties guarantee the non-application of unilateral coercive measures aimed directly or indirectly at one of the Contracting Parties…”
It refers to the rejection of Western sanctions in their respective countries, intending to create the conditions for free trade and cross-border settlements without the fear of Western sanctions. This part is particularly critical to sanctions evasion related to the multi-modal NSC.
In support of the agreement and economic integration of the two countries, despite Western sanctions, Andrei Kostin, CEO of VTB, Russia’s second-biggest bank, announced plans to establish bank branches in Iran by the end of 2025. This announcement took place the same day the Russian-Iran Cooperative Agreement was signed.
On the energy front, it is important to note that Russian Energy Minister Sergei Sivilyov led the Moscow welcoming party for Iranian President Masoud Pezeshkian and Iranian Foreign Minister Abbas Araghchi. This underscores the significance of the energy aspect of their relationship and the agreement. Article 22 of the agreement addresses energy cooperation through energy swap transactions, technology development, and coordinated policies within OPEC+. Russia’s increasing interest in energy collaboration with Iran was further evidenced in 2024 when Gazprom Chairman Alexei Miller opted to visit Iran instead of joining the Putin-led delegation to Beijing. This choice was particularly notable considering the time and resources the Kremlin had devoted to Power of Siberia 2, a stalled project intended to replace the European natural gas market with the Asian market.
Trade between Russia and Iran was $4B in 2023.
Conclusion
The agreement is significant in that it is a single comprehensive roadmap for cooperation in several sectors. However, Russia and Iran already have bilateral agreements in many of these sectors, and they often collaborate in organizations such as OPEC+ and BRICS+.
Most notable about the agreement, is the absence of a joint defense clause.
Additional Reading(s)
The Alliance of Aggrieved (Part 2) – Russia and Iran (Barbershop Whispers…Russia, 30 Jun 2024)
Putin's BRICS Block Party in Tatarstan (Russia) (Barbershop Whispers…Russia, 27 Oct 2024)
Russia and Iran Sign Comprehensive Strategic Treaty (The National Iranian American Council (NIAC) 17 Jan 2025)
Russia and Iran Sign Partnership Agreement (Military.com Barbershop Whispers…Russia, 17 Jan 2025
“Treaty on Comprehensive Strategic Partnership between the Russian Federation and the Islamic Republic of Iran (English Version).” (Government of Iran, 17 Jan 2025)
“Treaty on Comprehensive Strategic Partnership between the Russian Federation and the Islamic Republic of Iran (English Version).” (Office of the President of the Russian Federation, 17 Jan 2025)
Follow-ups & Quick Bites
Follow-ups
Lavrov Calls Nord Stream 2 Sale or Bankruptcy Theft
In a Moscow press conference, Russian Foreign Minister Sergei Lavrov said that the potential insolvency or sale of Nord Stream 2 AG (NS2) would amount to theft.
The Swiss court extended the deadline for NS2, a wholly owned subsidiary of the Russian energy giant Gazprom, to reorganize its debt obligations from 10 January 2025 to 9 May 2025.
In November, the Wall Street Journal reported that American investor Stephen P. Lynch had applied for a U.S. Treasury license to initiate discussions regarding the acquisition of NS2. According to BWR sources in Washington, D.C., the Biden administration did not approve Mr. Lynch’s license. However, discussions are ongoing with the incoming Trump administration.
Additional Reading(s)
Russia’s Gas Monopoly Comes Apart (Barbershop Whispers…Russia, 24 Nov 2024)
A Miami Financier Is Quietly Trying to Buy Nord Stream 2 Gas Pipeline (Wall Street Journal, November 2024)
Russia's Lavrov says possible personal bankruptcy or sale of Nord Stream 2 gas pipeline operator would be theft (Offshore Engineering – Energy News 14 Jan 2025)
Quick Bites
Nikolai Patrushev Interview – US Deep State & Ukraine Sovereignty
Komsomolskaya Pravda published an interview with Presidential Aide Nikolai Patrushev, in which he opined about Russia’s relationship with the US under the Trump administration.
In the interview, he characterized Trump’s slogans and agenda as revolutionary in an anti-establishment fashion that US elites themselves are divided on Trump’s agenda. He also inferred security concerns for Trump, saying,
“As his first term demonstrated, the notorious deep state in the United States is very strong. It may not allow him to develop […] the assassination attempt on him showed that we must be prepared for the most unthinkable scenarios.”
On the topic of Ukraine, he reiterated Putin’s position that the Russian-occupied Ukrainian territories, officially annexed by Moscow but not internationally recognized, are not negotiable. He went on to say,
“I believe that negotiations on Ukraine should be conducted between Russia and the United States […] there is nothing to talk about with London and Brussels. The EU leadership […] has long since lost the right to speak on behalf of many of its members, such as Hungary, Slovakia, Austria, Romania […] with respect to Russia.”
Earlier in the interview, he questioned whether Ukraine and Moldova will even exist by the end of 2025.
The interview reflects the Kremlin’s rejection of Ukrainian sovereignty. The Kremlin septuagenarians have never accepted Ukrainian sovereignty.
Additional Reading(s)
Nikolay Patrushev: “It is Possible that Ukraine Will Cease to Exist in the Coming Year” (Komsomolskaya Pravda, 14 Jan 2025)
Iranian President Visits Tajikistan
Iranian President Pezehkian arrived in the Tajik capital, Dushanbe, on the eve of his trip to Moscow.
During the visit, senior Tajik and Iranian officials signed 22 memoranda of understanding, and President Emomali Rahmon treated Pezehkian to a 21-gun salute at the Palace of Nations.
Tajikistan has long historical linguistic and cultural ties to Iran, stemming from its role in the Persian empire. As such, Tajikistan is often seen as a bridge between Iran and Russia in Central Asia.
Additional Reading(s)
· Iran, Tajikistan Sign Cooperation Documents During Presidential Visit (Eurasia Times, 16 Jan 2025)
Vol 3, No 03 - BWR 19.01.2025
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