Russia, Iran ink economic deals as Rouhani visits Moscow

Russian President Vladimir Putin, right, shakes hands with Iranian President Hassan Rouhani during a joint news conference at the Kremlin in Moscow, Russia. (AP)
Updated 28 March 2017
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Russia, Iran ink economic deals as Rouhani visits Moscow

MOSCOW: Russia signed Tuesday a string of bilateral agreements with Iran as President Vladimir Putin hosted his Iranian counterpart Hassan Rouhani for his first official visit to Moscow.
The meeting between Putin and Rouhani, who have grown closer through their mutual support of Syrian president Bashar Assad, mostly focused on flourishing economic ties in the fields of energy and industry.
Putin said in televised comments after the meeting that trade between the countries had “grown more than 70 percent” last year.
“This is truly a good result considering that it was achieved in unstable global conditions and amid persistent volatility on the commodity and currency markets,” Putin said.
A joint statement published by the Kremlin said that “special attention” had been paid to cooperation in energy, with both sides pledging to continue efforts to stabilize the international market.
In addition to cooperation on Syria, energy and defense ties have deepened between Iran and Russia in recent years.
Russia is to build nine of Iran’s 20 proposed nuclear reactors and has emerged as a long-term arms partner, supplying Tehran with its S-300 air defense missile system.
The relationship has blossomed under Rouhani despite the countries having a complicated history over territory, oil and Communist ideology.
Rouhani is looking to boost Iran’s economy ahead of elections in May, in which he is expected to stand for a second term.
Putin also hailed the countries’ role in ensuring peace in Syria, where both Russia and Iran have shored up Assad.
The joint statement said that cooperation between Tehran, Moscow and Ankara to bring the Syrian regime and armed rebels to the negotiating table was “an important step on the road to the success of the Geneva negotiations under the auspices of the United Nations.”
Rouhani said that Moscow and Tehran had “begun effective cooperation” in countering “terrorists” in Syria, in a speech at Moscow State University where he was granted an honorary doctorate.
Although the two sides reiterated the importance of cooperation on Syria, Rouhani’s visit came as splits emerge between the countries over the role to be played by Turkey, which is backing opponents of the regime.
Moscow has formed an unlikely alliance with Ankara since 2016, envisioning Turkey as part of a solution to the Syrian conflict.
But Iran has been more wary about Turkey’s involvement in efforts to end hostilities, with tensions mounting after Moscow and Ankara left Tehran out of a truce they brokered in December.
Moscow and Tehran helped Assad’s forces gain ground in recent months, including in the Syrian army’s major offensive last year to retake rebel-held eastern Aleppo.
Russia’s entry into the conflict in September 2015 — when it began launching air strikes to shore up Assad’s forces — helped turn the tide for the Syrian regime, while Iran has provided military advisers and frontline militia fighters.
More than 310,000 people have been killed in Syria since the conflict broke out in March 2011 with protests against Assad’s rule.


Britain needs to step up defense spending faster, says Starmer

Britain's Prime Minister Keir Starmer takes part in a panel discussion in Munich, Germany. (AP file photo)
Updated 5 sec ago
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Britain needs to step up defense spending faster, says Starmer

  • Britain’s budget watchdog, the Office for Budget Responsibility, said last year that raising defense spending to 3 percent of the GDP would cost an additional £17.3 billion a year ($24 billion) in 2029-30

LONDON: Britain should step up and accelerate its ​defense spending, Prime Minister Keir Starmer said on Monday, following a report that the government was considering bringing forward its target to spend 3 percent of economic output on defense.
Britain, which has warned of the risks posed by Russia, said in February 2025 that it would lift annual defense spending to 2.5 percent of the GDP by 2027 and aim for 3 percent in the next Parliament, which is expected to begin after an ‌election due in ‌2029.
The BBC reported that the government was ​now ‌exploring ways to ​reach the 3 percent target by 2029. It said no decision had been taken but the government recognized current plans would not cover rising defense costs.

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The BBC reported that the government is ​now ‌exploring ways to ​reach the 3 percent target by 2029.

Asked whether he would bring the target forward to 2029, Starmer echoed comments he made at the Munich Security Conference, where he said Europe had united to support Ukraine with the supply of weapons and munitions and to strengthen military readiness.
“We need to step up. That means on ‌defense spending, we need to go faster,” ‌Starmer told reporters on Monday. “We’ve obviously made commitments ​already in relation to that, but ‌it goes beyond just how much you spend.”
Latest NATO estimates show ‌that Britain spent 2.3 percent of the GDP on defense in 2024, above the alliance’s 2 percent guideline. But like other European countries, it has faced US pressure to spend more to protect the continent. Struggling with high debt and spending commitments, the government last ‌year cut its international aid budget to fund the hike in defense spending to 2.5 percent of GDP but is yet to publish an investment plan with spending priorities, something that has frustrated the defense industry.
Britain’s budget watchdog, the Office for Budget Responsibility, said last year that raising defense spending to 3 percent of the GDP would cost an additional £17.3 billion a year ($24 billion) in 2029-30.
Finance Minister Rachel Reeves has struggled to stay on track with her plans to repair the public finances. The BBC said the Finance Ministry was believed to be cautious about the new defense spending proposals.
A government spokesperson said Britain was “delivering ​the largest sustained increase in defense ​spending since the Cold War.”