Last month, Gazprom, a Russian state-owned multinational energy corporation, and the National Iranian Oil Company (NIOC) signed a $40 billion memorandum of understanding (MoU) that would enable the two countries to dominate the world market for natural gas and set the prices.
As of 2019, with sales over $120,000,000,000 representing twelve percent of the global output of natural gas, Gazprom was ranked as the world’s largest publicly listed natural gas company and the largest company in Russia by revenue.
The impact of the alliance is expected to increase as the use of natural gas is on the rise.
“Gas is widely seen as the optimal product in the transition from fossil fuels to renewable energy, so controlling as much of the global flow of that will be the key to energy-based power over the next ten to twenty years,” according to a statement last week from Hamid Hosseini, chairman of Iran’s Oil, Gas, and Petrochemical Products Exporters’ Union, in Tehran, after the Gazprom-NIOC MoU had been signed. “Now the Russians have come to the conclusion that the consumption of gas in the world will increase and the tendency towards consumption of LNG has increased, and they alone are not able to meet the world’s demand, so there is no room left for gas competition [between Russia and Iran].”
The two countries are focused on opposing the US.
In addition to the gas deal, Putin acquired drones for use in Ukraine from Iran. Intelligence organizations in many countries have speculated that, in return, Russia will help facilitate an Iranian nuclear weapons program. As Putin said at the “Army-2022” international military conference, “[We] are ready to offer our allies the most modern types of weapons.”
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