Economy

Iran focuses on European energy market

Despite a possible membership to Shanghai Cooperation Organization, Iran will target Europe as primary energy market, expert says

15.09.2014 - Update : 15.09.2014
Iran focuses on European energy market

By Ugur Serhan Ozcan

ANKARA

Iran is focusing on Europe as its primary energy market for its supply, despite a possible membership with the Shanghai Cooperation Organization (SCO), according Bakhtiyar Aslanbayli, energy expert and professor at Baku State University.

Aslanbayli said Iran is more interested in Europe in order to gain modern technology for efficient and productive exploration activities that the country needs. "From a gas supply point of view, I believe Iran is more interested in a European direction." Aslanbayli told Anadolu Agency. 

Under a deal reached in November 2013 in Geneva, western countries agreed to provide Iran with some sanctions relief in exchange for it agreeing to limit certain aspects of its nuclear activities. The process of easing the sanctions brings the chance for Iran to be an energy supplier to Europe, as a natural gas and oil rich country.

"Obviously, Iran needs modern technology for efficient and productive exploration activities, and these technologies could come from the West. So, I believe Iran is more interested in a European direction, but will also keep existing energy supply relations alive," he added.

The expert maintains Iran can benefit from easy access to the European market particularly with the EU's wish to increase a non-Russian gas supply after the easing of sanctions.

"Iran most probably is and will be interested in full membership in order to become part of important developments in the region." Aslanbayli said regarding Iran's wish to join the Shanghai Cooperation Organization (SCO). 

The SCO aims at strengthening regional ties in Eurasia, promoting cooperation in politics, economy, energy and other fields, as making joint efforts to maintain security and stability in the region.

Russian foreign minister Sergey Lavrov declared that observer states; Iran, Pakistan and India have demanded full membership in the organization last week prior to the SCO summit in Dushanbe in Tajikistan on 11-12 September, and one of the leading topics on the summit was the status of observer states' full membership. 

According to Aslanbayli, however, Iran cannot simply join the organization because of the existing sanctions, which makes it impossible according to the current rules of membership. He added that full membership of Iran, Pakistan and India is a matter for the near future.

"Pakistan and India are still having quite tense relations. Accepting two new members with tense and unresolved disputes may have a negative impact on the effectiveness of the organization," Aslanbayli added.

"China and India would never openly and actively take the Russian side in conflict with the U.S. and the EU. They both may develop economic relations, try to use the momentum to get cheaper prices for Russian gas, but they would never agree on a political alliance openly in contradiction with the U.S. and the EU." Aslanbayli said.

Russia, China, Kyrgyzstan, Kazakhstan, Tajikistan and Uzbekistan are members of the organization while Afghanistan, India, Iran, Mongolia and Pakistan have observer status while Belarus, Turkey and Sri Lanka remain dialogue partners of the organization.

www.aa.com.tr/en 

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