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OpEdNews Op Eds    H3'ed 8/20/14

Energy ballet: Iran, Russia and "Pipelineistan"

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From youtube.com/watch?v=4DAC1LeU8EI: Russian President Vladimir Putin was on hand to mark the start of construction of the South Stream gas pipeline.

What happened in the shadows is that Washington let it be known to Tehran that if the $10 billion Iran-Iraq-Syria gas pipeline was dropped, the sanctions would be somewhat relaxed, and Iran could have the go-ahead to revive Nabucco, a US-supported European obsession and formerly fierce rival of South Stream.

Yet talk is cheap. As it stands, there is a larger probability of Iran-Iraq-Syria finding financing within the next two to three years than Nabucco.

In parallel, as much as the US and EU sanctions on Russia are strengthening Iran in the nuclear talks, especially towards the Europeans, this does not mean Tehran will overplay the Russia card. As much as Iranian negotiators are relishing the new plot twist, the overall Iranian policy is in fact closer bilateral ties with Moscow to crack those sanctions on Iran for good.

And if Washington decides to keep the sanctions forever, Plan B is at hand: even closer Iranian cooperation with both Russia and China. Not accidently Iranian President Rouhani has dismissed any alarm about Iran-Russia relations; "Strong political ties in bilateral, regional and international domains, along with vast economic relations between the two countries, set the stage for the promotion of peace and stability." This includes everything from the Bank of China's parallel system to pay for Iranian energy to Iran-Russia barter deals.

In many overlapping ways, the Iranian nuclear dossier now is like a hall of mirrors. It reflects an unstated Washington dream; unfettered access for US corporations to a virgin market of 77 million, including a well-educated young urban population, plus an energy bonanza for US Big Oil.

But in the hall of mirrors there's also the Iranian projection --- as in fulfilling its destiny as the top geopolitical power in Southwest Asia, the ultimate crossroads between East and West.

So in a sense the Supreme Leader has it all covered. If Rouhani shines and there is a final nuclear deal, the economic scenario will vastly improve, especially via massive European investment. If Washington scotches the deal over pressure from the usual lobbies, Tehran can always say it exercised all of its "heroic flexibility," and move on --- as in closer and closer integration with both Russia and China.

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Pepe Escobar is an independent geopolitical analyst. He writes for RT, Sputnik and TomDispatch, and is a frequent contributor to websites and radio and TV shows ranging from the US to East Asia. He is the former roving correspondent for Asia (more...)
 

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