MNI BRIEF: ISM Expects Sluggish Growth, Sticky Services Prices

MNI BRIEF: German Infl In Line With EA, Growth Lags - GCEE

MNI BRIEF: Focus Support For Cutting-Edge Tech - Ministry

MNI BRIEF: EU Won't Necessarily Follow US on Tariffs-Gentiloni

MNI China Daily Summary: Wednesday, May 15

MNI: PBOC Conducts CNY125 Bln 1Y MLF Weds; Rates Unchanged

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -2.51M TO 457.0M MAY 10 WK

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Russia/Iran To Deepen Cooperation, Raise Risk Profile In UKR & MidEast

SECURITY
EM BulletHomepagePolitical RiskCommoditiesPolitical Risk BulletEmerging Market NewsMetals bulletPolitical Market NewsEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Russian Defence Minister Sergei Shoigu and Iranian Defence Minister Gharaei Ashtiani agreed to expand military and technical cooperation following a meeting at the Shanghai Cooperation Organisation (SCO) summit in Astana, Kazakhstan, according to a Reuters report.

  • Although Russo-Iranian military cooperation, which has accelerated since the 2015 Russian intervention in Syrian - and again after the Russian invasion of Ukraine - is baked into regional analysis, deeper cooperation could present some unpriced geopolitical risk worth bearing in mind.
  • Firstly, the two countries can offer various insulations from US-led sanctions. This could be particularly relevant as the US seeks to tighten sanctions following the the Iranian missile attack on Israel.
  • Secondly, in light of recent reports confirming that the US covertly supplied Ukraine with long-range ATACM missiles - which were used to strike an airfield in Crimea - Russia is likely to again pursue Iranian ballistic missiles. This could further inflame tensions around Ukraine, which have spiked since the US Congress passed a new funding package.
  • G7 foreign ministers said in Italy earlier this month: "We are prepared to respond in a swift and coordinated manner," if Tehran sends missiles to Moscow.
  • Thirdly, greater Russian dependence on Iranian military hardware is likely to reduce Russian leverage over Iran's nuclear programme. Moscow was a signatory to the now-lapsed 2015 nuclear deal but is now more likely to tolerate Iran creep towards nuclear status. Russia is also likely to use its veto on the United Nations Security Council to insulate Iran from any multilateral accountability.
250 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Russian Defence Minister Sergei Shoigu and Iranian Defence Minister Gharaei Ashtiani agreed to expand military and technical cooperation following a meeting at the Shanghai Cooperation Organisation (SCO) summit in Astana, Kazakhstan, according to a Reuters report.

  • Although Russo-Iranian military cooperation, which has accelerated since the 2015 Russian intervention in Syrian - and again after the Russian invasion of Ukraine - is baked into regional analysis, deeper cooperation could present some unpriced geopolitical risk worth bearing in mind.
  • Firstly, the two countries can offer various insulations from US-led sanctions. This could be particularly relevant as the US seeks to tighten sanctions following the the Iranian missile attack on Israel.
  • Secondly, in light of recent reports confirming that the US covertly supplied Ukraine with long-range ATACM missiles - which were used to strike an airfield in Crimea - Russia is likely to again pursue Iranian ballistic missiles. This could further inflame tensions around Ukraine, which have spiked since the US Congress passed a new funding package.
  • G7 foreign ministers said in Italy earlier this month: "We are prepared to respond in a swift and coordinated manner," if Tehran sends missiles to Moscow.
  • Thirdly, greater Russian dependence on Iranian military hardware is likely to reduce Russian leverage over Iran's nuclear programme. Moscow was a signatory to the now-lapsed 2015 nuclear deal but is now more likely to tolerate Iran creep towards nuclear status. Russia is also likely to use its veto on the United Nations Security Council to insulate Iran from any multilateral accountability.