BELARUS NEWS AND ANALYSIS

DATE:

22/05/2007

Iran Gives Belarus Oil Field

Iran's President Mahmoud Ahmadinejad arrived in Belarus on Monday on a two-day trip. Teheran has announced a decision to allow Minsk develop an oil field in the country, fulfilling President Lukashenko's dream of oil production.

Iranian President Mahmoud Ahmadinejad called President Alexander Lukashenko a close friend, and Lukashenko, who visited Iran in November, returned the compliment by saying Belarus was "ready for cooperation in all directions."

Iran is under United Nations Security Council sanctions over its refusal to halt nuclear activities, while Belarusian leadership is a target of heavy criticism from the United States and the EU for strangling freedoms.

Iran announced on Monday a decision to allow Belarus develop the Jufeyr oil field. President Lukashenko has long been dreaming of oil production as his country's own reserves is scarce and dwindling. The Jefeyr project is the first foreign deal for Belarusian oil firms. However, there are some investments risks to the deal as Iran is still under the threat of stronger economic sanctions or even a military operation.

Russian companies may also gain from the deal as 50 percent in the company which finances the field development is owned by Russia's Zarubezhneft.

On Monday and Tuesday, Mahmoud Ahmadinejad plans to hold talks with Belarusian officials, tour several Belarusian enterprises, the library and meet Iranians living in the country.

Source:

http://www.kommersant.com/p767355/r_527/Iran_Belarus_Oil/