China, Russia Avoid Investment In Iran Due To Sanctions

Hamid Hosseini, the head of the Iranian Oil, Gas, and Petrochemical Products Exporters Union
Hamid Hosseini, the head of the Iranian Oil, Gas, and Petrochemical Products Exporters Union

The Iranian Oil, Gas, and Petrochemical Products Exporters Union has revealed that China and Russia avoid business in Iran due to international sanctions.

In a recent interview with Iran Watcher, Hamid Hosseini said major Chinese and Russian companies, renowned for their international presence, have refrained from engaging in business with Iran due to the prevailing sanctions on the country’s oil industry.

This is despite Iran's 25-year contract with China, signed on March 27, 2021, in a ceremony at the Iranian Foreign Ministry in Tehran and a proposed 20-year economic trade deal with Russia which is still in negotiations.

Initially proposed by Iran's Supreme Leader Ali Khamenei during President Xi's 2016 visit to Tehran, the China agreement has remained a contentious issue within the country, with details largely undisclosed to the public.

Hosseini expressed that the sanctions have rendered major Chinese state-owned companies unable to collaborate with Iran, despite the contract.

While Iran has indicated its intention to strengthen trade relations with Asian countries, especially China, as talks with the United States and Europe over Tehran's nuclear program have yet to yield a resolution, China has been cautious about challenging existing US sanctions. Beijing's cultivation of closer ties with the Persian Gulf Arab countries and Israel has further complicated the situation.

Many Iranians have voiced their discontent with the cooperation agreement with China and the proposed 20-year deal with Russia, expressing concerns that the agreements may compromise the nation's interests.

However, dealings with Russia continue, not least in the field of drones and ammunition, with the two sanctioned nations finding ways to do business around global sanctions. Only in June, Russia's TASS news agency claimed that a free trade zone agreement between Iran, Russia and several countries in the vast Eurasian region spreading from the borders of Eastern Europe to Western China is possible by the end of the year.