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Russia's Windfall from Iranian Fray

[Moscow Times-Russia] Mac Broderick - Russia [a major oil exporter] has an immense amount of money to make if the tension regarding Iran continues, and a substantial amount to lose if a rapprochement occurs. To defend against the current financial crisis, the Russian government has been burning through its cash at an alarming rate. Meanwhile, the consistently high price of oil has buoyed the economy. The Iranian nuclear impasse has been a significant contributor to the dramatic price swings in the price of oil. Every time a new incident erupts, Russia reaps the reward of the increased oil price. The upside is even higher for Russia if tensions were to result in an actual conflict and Iranian officials were to make good on their pledges to block the Strait of Hormuz. This is not to imply that Russia would actively attempt to precipitate a conflict, but there is very little downside for it if one occurs.
2009-11-17 06:00:00
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