Moderator: Peak Moderation
Anatole Kaletsky in the Times wrote:This brings us to the final and most interesting strand in the anti-Iranian policy nexus: the price of oil. Iran?s economy depends entirely on oil sales, which account for 90 per cent of exports and a roughly equal share of the Government?s budget. Since last July, a barrel of oil has fallen from $78 to just over $50, reducing the Government?s revenues by one third. If the oil price fell into the $35 to $40 range, Iran would shift into deficit, and with access to foreign borrowing cut off by UN sanctions, the Government?s capacity to continue financing foreign proxies would quickly run out. Iran has reacted to this threat by calling on Opec to stabilise prices but, in practice, only one country has the clout to do this: Saudi Arabia. Earlier this month, in a highly significant statement, Ali al-Naimi, the Saudi Oil Minister, publicly opposed Iranian calls for production cuts to halt the decline in prices. Mr Naimi's pronouncement was cast as a technical matter unconnected with politics, but it seemed to confirm private warnings by King Abdullah that his country would try everything to thwart Iran?s hegemony in Iraq and throughout the region, whether by military intervention or more subtle economic means.
The Iranians have obviously got some money left in the piggy bank. I wonder how 'Armydinnerjacket' squared this purchase with his somewhat disenchanted superiors.Russia has completed a contract to sell some 30 air defence missile systems to Iran, a senior official has said.
The head of the state-run weapons exporter Rosoboronexport was quoted by Russian media as saying that delivery was completed at the end of last year.
The deal - worth $700m (?380m) and signed last year - has angered the US and Israel who say Iran may use the missiles to attack its neighbours.
Russia says its Tor-M1 system is short-range and purely defensive.
"[Russia] fully completed delivery to Iran of the Tor-M1 missile complexes at the end of December 2006," Itar-Tass news agency quoted Sergei Chemezov as saying.
Defence Minister Sergei Ivanov has previously said that because of their technical characteristics, the missiles cannot be used by terrorist groups.
Washington wants all countries to stop exporting weapons to Iran, but Russia and China strongly oppose the move.
Both countries voted for a UN resolution which bans sensitive nuclear trade with Tehran, but there are no sanctions on conventional weapons.
Well, they should know all about that!the US and Israel who say Iran may use the missiles to attack its neighbours.
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