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Sunday, January 16, 2011

Sanctions? What sanctions?

Despite the international sanctions against the Iranian regime, Iran has entered into a blockbuster gas deal with neighboring Azerbaijan (Hat Tip: Is Iran's Fist Still Clenched?).
Azerbaijan on Wednesday agreed a five-year deal to supply gas to neighbouring Iran, officials at the ex-Soviet republic's State Oil Company said.

The agreement stipulates annual supply of at least one billion cubic metres.

"At the beginning of every year, the parties will agree the volumes of gas to be supplied during the year ahead but it will be a minimum of one billion cubic metres," said the president of Azerbaijan's State Oil Company, Rovnag Abdullayev.

Abdullayev said that supplies would start in February.

"The signing of the gas contract is a new and great step," the Iranian Oil Minister and current head of OPEC, Masoud Mir-Kazemi, who is visiting Baku, told the Trend news agency.

Iran holds the world's second largest natural gas reserves after Russia but lack of foreign investment in its massive fields, energy inefficiency and colossal domestic demand means it still needs to import gas.
But don't worry: A European Union envoy was due in Baku - Azerbaijan's capital - at the end of last week... to secure their own supply.

What could go wrong?

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