Iran is on the outs with its longtime ally, Russia. Russia had been protecting Iran from the stronger sanctions the U.N. Security Council wants to impose for Iran's refusal to suspend its nuclear enrichment program. In fact, Russia has been helping build a nuclear power plant at Bushehr in southern Iran. But now, Iran is behind on payments for that project and Russia has suspended work at the plant. There are reports that Russia won't send the fuel to Bushehr until Iran freezes nuclear enrichment activities. Joining us is Mark Fitzpatrick, who directs the non-proliferation program at the International Institute for Strategic Studies in London.
Hello.
Mr. MARK FITZPATRICK (Director, Non-Proliferation Program, International Institute for Strategic Studies) : Good morning.
MONTAGNE: Now, Russian officials are denying a link between the Bushehr project and the Security Council action. Is there one?
Mr. FITZPATRICK: I think there is a link Russia has to be careful not to state so explicitly because of its contractual arrangements. But Russia has been making clear for some time that it would not be finalizing the plant fuel arrangements until Iran took a more cooperative stance.
MONTAGNE: Now, the Bushehr project is years behind schedule. What's up with Iran? Is it not, in fact, paying what it's supposed to be paying?
Mr. FITZPATRICK: What it looks to be is actually a problem with what currency Iran must pay the final bills. This problem is exacerbated, actually, by the sanctions that the United States has been putting on Iran, blocking Iranian banks from doing transactions in U.S. dollars. Iran tried to pay Russia in Euros. Russia apparently is demanding that the terms of the contract be carried out, which specify payments in dollars. Some of this is surmise, though. What exactly the contractual arrangements and the negotiations are is not open.
MONTAGNE: But it's a theory that Iran would like to pay, it's just having problems?
Mr. FITZPATRICK: I think it's crazy for Iran not to want to pay. This is $25 million dispute in what is a billion dollar project. Iran has paid most of the money for that project. So, I think it really is more of a political issue here at play.
MONTAGNE: Russia, typically, has been out of step with the U.S. and European Union when it comes to dealing with Iran over its nuclear program. Are we now seeing signs of a substantive change in Russia's position?
Mr. FITZPATRICK: It's not so much that they are out of step, but they are a step or two behind. A year and a half ago, Russia did not want this issue even going to the Security Council. But when Iran resumed enrichment in January 2006, Russia voted to send it to the Security Council.
MONTAGNE: And just finally, is Russia concerned about Iran's nuclear program?
Mr. FITZPATRICK: President Putin told President Bush a few years ago that he was concerned and that Iran would not go nuclear under his watch. But Russia also has various commercial interests. They have a multi-billion trade relationship with Iran. They have security interests. They don't want Iran making trouble on their Islamic southern flank. So it's a complicated relationship, and I think that the concerns about having a nuclear-armed neighbor have now risen to the top of that priority list.
MONTAGNE: Mark Fitzpatrick directs the non-proliferation program at the International Institute for Strategic Studies in London.
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