Russia tries to undercut sanctions

United Nations: Even as the White House praised Russia for declining to sell anti-aircraft missiles to Iran in violation of UN sanctions, Russian diplomats were quietly recruiting other countries to undercut tougher penalties imposed on the Islamic Republic.

Russia supported weak UN sanctions approved in June to pressure Iran over its nuclear programme. But it has strongly objected to tougher sanctions added individually by the US, the European Union and four other countries.

It fears those sanctions may end up hurting Russian companies that do business in Iran.

It is unclear whether Russia's effort at the UN last week to rally major developing countries will bear fruit. But Moscow's pushback sends a troubling signal about the prospects for more rigorous efforts to force Iran to bend. And it raises questions about whether the Obama administration has much to show for its highly publicised effort to ‘reset' relations with the Kremlin.

Bomb fears

Although Tehran insists it is interested only in generating electricity, the US and many other countries believe Iran's nuclear programme is aimed at trying to build a bomb.

Frustrated at the relatively weak sanctions approved in June that targeted arms sales, Iran's nuclear sector and the Revolutionary Guard, the Obama administration and its allies imposed their own sanctions aimed at crimping trade and cutting off foreign investment in Iran's vital energy sector.

As diplomats from around the world convened in New York for the annual UN General Assembly meetings last week, Russian diplomats tried to enlist like-minded countries to make a stand against those unilateral sanctions.

In a Wednesday meeting with diplomats from China, India and Brazil, the Russians raised the prospect of a UN General Assembly resolution that, while not binding, would send a loud signal from countries eager to seize opportunities in Iran's energy sector — and probably weaken the ability of the US and its allies to get other nations to go along with their tougher approach.

No to unilateral action

All four countries oppose the unilateral sanctions. Another important opponent is Turkey, which has signalled a keen interest in additional energy deals with its neighbour Iran.

Among members of this group, "there is a broad agreement on principles," said a diplomat from a nation involved in the talks.

The diplomat, who spoke on condition of anonymity, said the group is not yet ready to offer a specific resolution.

Unfair move

Sergei Ryabkov, the deputy Russian foreign minister, said it was unfair for the US and western allies to unilaterally impose tough measures after they had failed to persuade other UN Security Council members to accept them.

"They adopt precisely the same elements that we were unable to agree with at the United Nations," Ryabkov said in an interview. "This is really a question of political ethics, political morality."

Russia, which has just completed construction of Iran's first nuclear power plant in Bushehr, sees large business opportunities in the Islamic Republic.

But Moscow fears that the US sanctions could prevent Russian companies from doing business with the US if they also are doing business in Iran.

Another concern is that multinational companies based in other countries might shy away from dealings with their Russian counterparts.

Since the UN resolution was adopted, Turkey and China have sold huge cargoes of gasoline to Iran, energy traders say. Russia signed a long-term partnership with Iran's Energy Ministry, and China has increased its commitment to invest in the energy sector to $40 billion.