The Hindu

Thursday, Aug 01, 2002

Iran may find it hard to spurn Russian offer

By Atul Aneja

MANAMA (BAHRAIN) JULY 31. Though Iran has got a commitment from Russia on
the supply of civilian nuclear reactors, in return it may have to go along
with Moscow's controversial plans to share the Caspian Sea oil and gas
resources.
Russia last week announced that it was considering supplying more nuclear
power reactors to Iran at its facility in Bushehr. The U.S. is opposed to
the supply of the reactors as it fears Iran may use them to develop nuclear
weapons. Russia and Iran differ on the formulation that will define the
sharing of the Caspian seabed resources. Iran believes that the five
countries — Iran, Russia, Azerbaijan, Kazakhstan and Turkmenistan — that
straddle the Caspian Sea should share these resources equally.
The Caspian Sea deposits, when combined with the estimated mainland reserves
in the countries that surround it, are huge and could be nearly one-third
the size of the Persian Gulf reserves. Other states, especially Kazakhstan,
Azerbaijan and chiefly Russia, disagree with Iran, pointing to the
variations in the length of their coastlines as the basis for an alternative
arrangement.
Impatient with the delay in arriving at a consensus, Russia has worked out
reserve-sharing bilateral agreements with Kazakhstan and Azerbaijan. Under
this arrangement, the seabed, with crucial modifications, is carved along a
median line drawn between the countries that face each other. Iran feels
that it will lose out greatly in case this arrangement is applied. From the
20 per cent that it claims, its share would drop to 12 to 13 per cent of the
seabed. Encouraged by Russia which has already worked out a deal with
Kazakhstan for a stake in developing its off-shore Kurmangazy field, Astana,
on its part, is working out a sea bed sharing arrangement with Azerbaijan.
Incidentally, India is also getting embroiled in Caspian Sea politics for
the Kazakhs during the Prime Minister, Atal Behari Vajpayee's June visit to
Almaty, offered New Delhi participation in developing the Kurmangazy field.
Russia, which is already present in Kurmangazy, and India have already
worked together in developing the Sakhalin area along with Exxon Corporation
of the United States. Iran, in the light of the joint progress made by
Russia, Azerbaijan and Kazakhstan, is feeling left out. Last year, Iran
expressed its resentment by sending its gunboats after an Azerbaijani survey
ship which was allegedly in its territorial waters. The near clash between
Azerbaijan and Iran, was a wake up call, especially for Russia that is
looking for stability in the Caspian.
Significantly, in what appeared to be an ultimatum to Iran to make up its
mind, the Russian Defence Minister, Sergei Ivanov, has announced that
Russia, along with Kazakhstan and Azerbaijan, will be shortly undertaking
military exercises in the Caspian. But keen to avoid a confrontation with
Iran, provided its strategic interests in the Caspian are not undermined,
Russia has subsequently invited Iran to participate in these manoeuvres.
By going ahead with flexing its muscles, Russia, according to analysts, has
signalled to the Iranians that it will protect its core interests in the
Caspian, even if it has to pay a high cost. But, on the other hand, if the
Iranians respect Russian stakes in this zone, Moscow is ready to promote
Iranian interests in other fields, even if this meant confronting
Washington.
Not surprisingly, Russia has dangled the carrot of supplying more nuclear
power reactors to Iran, soon after the U.S. Senate introduced a resolution
that advocated that Washington should give up on the Iranian leaders,
including the moderate President, Mohammad Khatami. With Iran facing
pressure from all-around, it might find it difficult to spurn Moscow's
comforting hand.

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