Persian Files ISSN 2975-0598 Volume 29 Issue 3
SpecialEurasia OSINT Unit
Executive Summary
On January 17th, 2025, Russian President Vladimir Putin hosted Iranian President Masoud Pezeshkian in Moscow, where both leaders formalised a Russia-Iran strategic partnership agreement, which marks a major step forward in their relationship, emphasising economic cooperation, independent financial systems, and collaboration on regional and global security.
This partnership responds to sanctions pressure and mutual priorities in regional influence and economic resilience. Potential outcomes include strengthened regional cooperation, shifts in power dynamics, and greater alignment in multilateral settings.
This report, based on local and international sources and SpecialEurasia’ previous investigations, analyse Putin-Pezeshkian’s meeting and the impact of an increasing Russia-Iran’s cooperation in the Eurasian geopolitical chessboard.
Background Information
On January 17th, 2025, President Masoud Pezeshkian of the Islamic Republic of Iran conducted an official visit to Moscow, where he held discussions with President Vladimir Putin at the Kremlin. The visit resulted in the signing of a comprehensive strategic partnership agreement, marking a significant development in the bilateral relationship.
This agreement highlights key areas for collaboration: increased trade, an independent payment system, and joint energy and logistics projects. Both nations also reaffirmed their commitment to countering terrorism and fostering regional stability. The accord aligns with Tehran and Moscow’s broader efforts to navigate the challenges posed by external restrictions and developing geopolitical dynamics.
This meeting follows other recent developments in their partnership, such as Iran’s Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU) and ongoing projects like the International North-South Transport Corridor (INSTC).
Geopolitical Context
The Russia-Iran partnership occurs against the backdrop of developing dynamics in the Caucasus, Central Asia, and broader Middle East.
- Caucasus Developments: Both Russia and Iran maintain significant stakes in the South Caucasus. Following Azerbaijan’s 2023 military success in Nagorno-Karabakh/Artsakh, Tehran and Moscow have sought to limit Ankara’s expanding regional influence. Yerevan’s recent pivot towards Western partnerships, highlighted by the U.S.-Armenia Strategic Partnership, introduces further uncertainty. Both nations aim to monitor and influence developments while maintaining relationships with Azerbaijan, particularly given its critical role in the INSTC.
- Central Asia: Economic integration with Central Asia remains a priority for Russia and Iran. The EAEU-Iran FTA strengthens trade ties, especially in agriculture and manufactured goods, furthering the goal of a stronger Eurasian economic network. This aligns with Moscow’s initiatives to merge regional partnerships and Tehran’s interest in enhancing its role as a transit hub.
- Middle East Priorities: Iran’s strategic position and shared objectives with Russia, particularly in Syria and Iraq, provide a foundation for security cooperation. Both nations oppose unilateral policies that challenge their regional interests, creating a basis for alignment in counterterrorism efforts and broader security initiatives. The recent fall of Assad in Syria and the rising role of Hayat Tahrir al-Sham and local militia groups backed by Turkey have increased the regional uncertainty and pushed both Moscow and Tehran to reevaluate or change their foreign policy in the Middle East. If the Russian Federation’s primary goal is to maintain military bases on the Syrian coast, the Islamic Republic needs to elaborate on a new regional strategy considering the significant lost registered last year in the entire region.
- Economic Factors: Western sanctions have incentivised Russia and Iran to explore alternative trade and financial mechanisms. Proposals for autonomous payment systems reflect collaborative initiatives to ease economic vulnerabilities. However, energy trade presents potential areas of competition, particularly in overlapping markets.
- Global Implications: This partnership reflects broader trends towards regional alignment and economic self-reliance. Collaborative efforts within multilateral platforms, such as BRICS and the Shanghai Cooperation Organisation (SCO), illustrate shared interests in shaping alternative frameworks for international engagement.
Why Does It Matter?
Moscow-Tehran’s strategic partnership significantly affects regional stability and global alignments.
- Bilateral Benefits: The agreement strengthens economic ties with a focus on trade, energy, and logistical connectivity. Russia leverages Iran’s geostrategic location as a transit hub, and Iran receives reciprocal political and economic backing in mitigating external pressures. Both countries aim to enhance resilience against sanctions.
- Regional Stability: In the Caucasus, the partnership seeks to balance competing influences while securing strategic corridors such as the INSTC. Collaborative engagement with Azerbaijan and monitoring Armenia’s foreign policy alignments will remain priorities. The emphasis on counterterrorism and regional security underscores shared goals to maintain stability in their areas of interest.
- Risks and Challenges: Diverging interests in energy markets and limited financial resources could constrain the partnership’s effectiveness. External actors, including Turkey’s regional ambitions and Western support for Armenia and interests in Central Asia and the Middle East, introduce variables that may complicate Russia-Iran coordination. The risk of overreliance on mutual trade amid constrained global markets could expose vulnerabilities.
Future Scenarios
- Enhanced Integration: Deeper cooperation in trade, security, and multilateral platforms could reinforce alignment, advancing both nations’ strategic goals.
- Regional Tensions: Competing interests or external pressures could lead to frictions, particularly if third-party actions destabilise key areas.
- Eurasian Realignments: Successful implementation of initiatives like the INSTC and expanded FTA terms could reshape regional connectivity and influence broader trade patterns.
*Picture: The meeting between Putin and Pezeshkian in Moscow (Credits: Kremlin.ru)
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