Russian companies to benefit from US Iran withdrawal

Andrew Cummings
May 16, 2018

European Union diplomats said they needed some time to understand the USA position.

Speaking on Sunday in Beijing, Mohammad Javad Zarif underlined Tehran's readiness "for all options" but expressed optimism that this round of negotiations could save the 2015 deal.

"[But] if the nuclear deal is to continue, the interests of the people of Iran must be assured".

"I want to stress that that does not mean we are in any sense not going to be working with the Americans", Johnson said, adding: "it's vital that we continue to engage with the United States of America and continue to interrogate our friends in Washington about how they see the nuclear deal developing".

"What we are going to do tomorrow in Brussels is we are going to have a conversation about what we can do to help United Kingdom firms, European firms have some confidence that they can still do business", Johnson said.


The International Atomic Energy Agency (IAEA) has repeatedly confirmed that Tehran has been meeting its nuclear commitments fully.

US President Donald Trump announced on May 8 the US would be withdrawing from the deal, which was signed under former President Barack Obama, saying it was "defective at its core".

Meanwhile, the Kremlin said that Russian Federation and its ex-Soviet allies will sign a free trade pact with Iran.

Iranian Foreign Minister Mohammad Javad Zarif arrived in Brussels for a meeting with his British, French and German counterparts later on Tuesday, shortly before Washington announced extra sanctions on Iranian financial officials.

Mehrdad Emadi, an economic expert and consultant at the UK-based Betamatrix International Consultancy, believes that the re-imposition of the USA sanctions against Tehran will not cut the country's oil export to below the pre-nuclear deal period in short term, but in medium term it can seriously impact Tehran's oil sale. Now, the outcome of the United States getting out of it is to reimpose all American sanctions as they were before the deal came into effect. Citing data from the Stockholm International Peace Research Institute, the newspaper explained that Iranian military spending has increased by only about 30 percent from 2015, the year the Iran deal was reached, to last year. Kerry has suggested that the USA leaving the JCPOA would lead Kim Jong Un to conclude that any agreement reached with a United States president could be thrown out by his successor. The catch 22 has kept global oil prices on the bearish side because of the ample supplies.


Bolton said Europe was still digesting Trump's move last week. "They have to meet somewhere in Europe". They include retaliatory sanctions, allowing the European Investment Bank to invest directly in Iran and coordinating euro-denominated credit lines from European governments.

Iran's Supreme Leader Ali Khamenei has already said that Israel won't exist in 25 years if it continues to destabilize the region. "If a supply dislocation emerges and inventories get abnormally low, then OPEC and Russian Federation may act", said Yasser El Guindi, market strategist at Energy Aspects.

The EU has said it will stick to the deal as long as Iran does, but the Islamic republic has warned it is ready to resume "industrial-scale" uranium enrichment if it is not satisfied.

"We believe that this occurred mainly due to the reasons, which are not tied to the JCPOA, and frankly speaking, the U.S. representatives are not hiding this", Ryabkov said.


Other reports by iNewsToday

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