Putin signs $30 billion energy deal in Tehran

We wrote here in July that absent relief from US sanctions, Russian President Vladimir Putin would forge his own path in the Middle East by carefully working with and through regional powers, especially Iran.

So perhaps it is no surprise that when Putin met with Iran's Supreme Leader Ayatollah Ali Khamenei on Nov. 1, there seemed to be a meeting of the minds on regional developments, especially regarding Syria and Iraq, as well as agreement to deepening economic cooperation in many fields, including energy.

Putin continued his surge of regional energy diplomacy while in Tehran, following up on his reset in Iraq, as we reported last week. During Putin’s visit to Tehran, Russia and Iran agreed to “strategic” energy deals worth as much as $30 billion for development of Iran’s oil and gas fields, as well as research collaboration. With the agreement, Rosneft and Gazprom, the Russian energy giants, put themselves ahead of potential Western suitors in Iran. If the United States reimposes sanctions on Iran, Russian and Chinese energy companies are best positioned to run the field in meeting Iran’s substantial energy investment needs.