According to Iranian domestic media last week, Iran and Russia have agreed in principle to create joint-venture companies for prospecting, extracting, and processing oil. Russian deputy prime minister Oleg Davydov, meeting with Iranian oil minister Gholamreza Aghazadeh, was also reported to have reached a 10-year economic cooperation agreement to be signed at the presidential level. Davydov was quoted as saying that Moscow would continue to assist Iran’s nuclear power program and to cooperate with Iran in military industry. (12)
Russia has already received an $800 million contract to complete an Iranian nuclear power plant in Bushehr on the Gulf coast and has discussed additional deliveries of nuclear equipment to Iran. In recent years, Russia has sold Iran several billion dollars of weaponry, including three Kilo-class diesel-electric submarines (one of which has yet to be delivered). Tehran is believed to be seeking missile technology and advanced combat aircraft from Russia and other sources.
Russian Foreign Policy Adrift at Crucial Moment.