The Iranian Nuclear Issue

Russia and China Versus the U.S. and Europe, Dialogue Versus Embargo, and How China Benefits from It All

Russia and China have decried Western countries’ ban on importing Iranian oil, based on Iran’s pursuit of its nuclear program, as “not constructive.” Both countries are also unsupportive of UN Security Council calls for the resignation of Syrian President Bashar al-Assad, who has continued his crackdown on anti-government protesters. While the West is planning to increase pressure on Iran and Syria, both Russia and China are clearly distancing themselves from Europe and America by advocating a more diplomatic solution.

China’s state-run Xinhua News Agency printed their Foreign Ministry spokesman’s remarks in its English publication on May 26, in which he expressed discomfort with the EU decision to impose an oil embargo on Iran. He was quoted as saying, “to blindly pressure and impose sanctions on Iran is not a constructive approach,” and that China has been advocating settlement of disputes through dialogue. China is the biggest buyer of Iranian crude oil, accounting for 22 percent of Iran’s oil exports. Its criticism of the Western oil embargo reflects a desire to maintain a good relationship with the source of its oil supply.

But if the European embargo comes into full effect this summer, China — strengthening its relationship with Iran — may very well benefit from lowered oil prices and is therefore also regarding the issue with hopes of buying crude oil inexpensively. While heavily criticizing the West, the Chinese might be overestimating the potential merits for their own country.

At the same time, China is eying other oil-producing countries in an effort to secure a steady supply of crude oil, which is essential for its economic growth. Prime Minister Wen Jiabao visited Saudi Arabia, the United Arab Emirates (UAE) and Qatar in succession between Jan. 14-19 to prepare for any unforeseen circumstances.

The second biggest buyer of Iranian oil, India, has also voiced opposition to the sanctions. It relies on Iranian exports for 12 percent of its total oil consumption and would face difficulties without Iranian crude oil, said Indian Foreign Secretary Ranjan Mathai. Indian Oil Minister S. Jaipal Reddy described the possibility of lowered oil prices as “favorable.”

The Russian Foreign Ministry criticized the EU decision to impose an embargo, stating, “Iran would make no concessions under such pressure.” Russia has close ties with Tehran, developed through support for its construction of nuclear power plants amongst other things. It stressed that even though political and diplomatic engagement with Iran regarding the nuclear issue is liable to be a frustrating endeavor, continued dialogue with the Islamic Republic is essential.

Meanwhile, the Russian Deputy Minister of Foreign Affairs commented on Jan. 26 that by planning to impose sanctions on Syria, the West was seeking to repeat the Libyan scenario (which led to the fall of the Gadhafi administration), and that Russia strongly rejected this approach. Russia has maintained friendly relations with Syria since the Soviet era, and 7 percent of its foreign arms exports go to Syria.

On Jan. 24, the Russian newspaper Kommersant reported that Russia has signed a $550 million contract to sell 36 Yak-130 combat training aircrafts to Syria. Russia justified this deal against concern by Europe and the United States, saying that no international sanctions exist that ban the supply of weapons to Syria. At the beginning of the month, a Russian Navy aircraft carrier docked at the western Syrian port of Tartus, making its presence felt.

In October of last year, Russia and China used a double-veto to block a resolution threatening sanctions against Syria. Russia has presented its own resolutions towards Syria, but is likely to veto any resolution paving the way for military action against the country.