By Svetlana Burmistrova

ASTRAKHAN, Russia, June 3 (Reuters) – When sanctions on Iran have been lifted in January, Russia might need anticipated to be close to the entrance of the queue for enterprise alternatives. Moscow, in spite of everything, was one in every of Tehran’s oldest allies and is now its associate on the battlefield in Syria.

On the proof of the commerce passing by the Caspian Sea port of Astrakhan, the primary jumping-off level for Russian sea-borne commerce with Iran, it’s not taking part in out like that.

The worth of products shipped from the Astrakhan area to Iran within the first 4 months of this 12 months was down 16 p.c on the identical interval final 12 months, in accordance with the regional authorities.

“There’s a pause with grain, timber products are being loaded, metal gets shipped very rarely and then only in very small consignments,” mentioned Artyom Ulyanov, business director of Astrakhan’s central cargo port. “Overall, we’re loading less that we did in previous periods.”

That, in accordance with merchants and transport business sources, is partly as a result of Russian pink tape is choking commerce at a time when Iranians can do offers with Western international locations that have been successfully closed off to them earlier than due to sanctions.

To be certain, the port at Astrakhan is just a snapshot of the state of Russian-Iranian ties. But it may level to the restrictions of a relationship that’s solid from a convergence of pursuits in areas like Syria fairly than a shared world view.

The temper across the wharfs and dockyards at Astrakhan, Russia’s greatest Caspian Sea port, is bitter.

On a go to late final month, a Reuters correspondent discovered that cranes in a number of sections of the port have been standing nonetheless as a result of there was no cargo to maneuver.

“Before, we had to search for ships” to hold cargo to Iran as a result of the amount of the commerce was so excessive, mentioned the proprietor of a grain-exporting firm that provides Iran, talking of commerce earlier than the worldwide sanctions have been lifted.

Now, mentioned the businessman, who requested to not be recognized so he may converse candidly, ship operators got here knocking on his door on the lookout for enterprise.

Last month, Russia’s ministry for financial improvement organised a Russian-Iranian enterprise discussion board meant to happen in Astrakhan. Russian Energy Minister Alexander Novak was scheduled to attend.

It was referred to as off, with the native authorities citing “circumstances that have arisen”. Some individuals solely discovered the occasion was off after they have been already on the way in which there.

“We and another thousand people from Iran got tickets and visas, but they called off the forum two days before it starts,” mentioned Taban Tizgush, president of the chamber of commerce and business within the Iranian province of Gilan, on the Caspian Sea.

“That causes us a lot of damage.”

MIDDLE EASTERN PARTNERS

How Iran and Russia get together with one another issues globally.

The joint operation between Russia’s air pressure, Iran’s army and the Iranian-allied Hezbollah militia turned the tide of the Syrian civil struggle in favour of President Bashar al Assad’s administration, irritating Western efforts to push him out and testing U.S. affect within the Middle East.

What occurs subsequent in Syria relies upon in giant diploma on whether or not the Russian-Iranian partnership holds collectively and retains backing Assad.

The port at Astrakhan offers one perspective on ties between the international locations. Elsewhere, offers are being performed.

Russia’s authorities mentioned final 12 months it had agreed joint tasks with Iran price $40 billion. A Russian shipbuilder gained a contract in May price almost $1 billion to construct 5 offshore drilling rigs for Iran. Moscow can also be promoting refined weapons to Tehran, together with S-300 air defence missiles.

But the temper on the port chimes with a extra common ambiance of rigidity in ties between Iran and Russia.

Some Iranian officers are cautious of getting too near Russia, which occupied Iran twice within the twentieth century. Russia for its half is cautious of Iran changing into too highly effective and of alienating Iran’s rivals within the Middle East.

Interactions between the Kremlin and Iranian officers can, at instances, be fraught.

When Russian President Vladimir Putin visited Tehran in November final 12 months for a gasoline exporters’ discussion board, Iranian safety officers barred reporters travelling with Putin from coming into the venue.

That sparked an argument between Iranian safety and Kremlin press service officers, and within the scrum that resulted, Russian Foreign Minister Sergei Lavrov and Novak, the power minister, have been jostled, in accordance with a Reuters reporter who was there.

NEW COMPETITION

In an interview with Reuters, Alexander Zhilkin, the Astrakhan area governor, mentioned grain exports this 12 months can be decrease than in 2015 as a result of Iran was implementing non permanent grain import restrictions.

But he mentioned he anticipated commerce to double inside 18 months of all of the worldwide sanctions being lifted on Iran.

“Petrochemicals, paper, glass, wood, wood products; there is demand for all of that,” he mentioned. “This year, unexpectedly, we’ve had requests from Iran for potatoes and onions.”

However, native enterprise folks say the deeper downside is just not demand.

Traders who transfer items by Astrakhan to Iran speak of layers of pink tape that may maintain up cargoes for months, of corrupt officers withholding permissions, and of import and export rules altering with out warning.

“That’s why our share of trade with Iran is pitifully small,” mentioned Alexander Rybakov, finance director of RusIranExpo, an exporters’ union.

Despite these points, throughout the years of sanctions commerce was wholesome. That was partially as a result of Russian firms have been ready to take the chance of doing transactions with Iran, whereas many different international locations weren’t.

The principal exports through Astrakhan – wheat, timber and scrap metallic – weren’t banned by sanctions. But the worldwide restrictions imposed over Tehran’s disputed nuclear programme successfully barred Iran from worldwide monetary methods, so settling payments was sophisticated.

Russian companies discovered methods round that, by utilizing middleman banks in third international locations. Grain exports from Russia to Iran grew whereas sanctions have been in pressure.

But with sanctions gone, enterprise folks in Astrakhan predict that massive world grain merchants will now transfer into the Iran market, squeezing out Russian gamers.

The massive world merchants can have decrease prices as a result of they will ship grain on vessels of as much as 70,000 tonnes through Iran’s Gulf ports, whereas the utmost measurement of vessels within the Caspian is 6,000 tonnes, mentioned Hossein Lotfi, proprietor of a buying and selling agency.

“If Russia does not take steps to hold onto its trade with Iran, it could lose 20 to 30 percent of grain exports,” mentioned Lotfi, who can also be a advisor to Astrakhan’s chamber of commerce with Iran.

“Once payments are simplified new players could come into the south of Iran, and they can offer lower prices.”

(Additional reporting by Polina Devitt and Denis Pinchuk in MOSCOW; Editing by Christian Lowe and Pravin Char)

(c) Copyright Thomson Reuters 2016.