Steve LeVine covers foreign affairs for BusinessWeek. He previously was correspondent for Central Asia and the Caucasus for The Wall Street Journal and The New York Times for 11 years. His first book, The Oil and the Glory, a history of the former Soviet Union through the lens of oil, was published in October 2007. Putin’s Labyrinth, his new book, profiles Russia through the lives and deaths of six Russians. It was released this week.

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A Blog on Russia, Central Asia and
the Caucasus

Friday, February 8, 2008

Guest Column: Iran's Cold Winter

By Paul Sampson

Iran is in the grip of an energy crisis that has left homes without heating and electricity, forced the temporary shut-down of power plants, and even led National Iranian Oil Co to stop re-injecting gas into its onshore oilfields. How could this happen in a country with the world's second-largest oil and gas reserves, you might ask?

First, this year's winter has been the coldest in a half century; Turkmenistan cut gas supplies to Iran at the beginning of the year in a pricing dispute; and, President Mahmoud Ahmadinejad reacted very slowly to a national emergency.

Iranians I've spoken to say the trouble with Turkmenistan was entirely avoidable. Last autumn, Turkmenistan said that in 2008 Iran would have to remit much more than the $75 per 1,000 cubic meters, the extremely low price it had been paying. But rather than deal (what even Russia's Gazprom when the Turkmen raised the same gripe), the Iranians dug in their heels and -- hey presto -- had the taps turned off.

The Turkmen pipeline supplies remote northern Iran villages that are cut off from the mainland, so there was always going to be a problem. But, as the freezing weather started to bite, the problem became a full-blown crisis.

For Ahmadinejad, whose handling of the economy has been woeful at a time Iran is being squeezed by US-led sanctions, the energy shortages should be an embarrassment. Some analysts predict he'ill pay for his shortcomings with a hammering in next month's parliamentary elections, where his conservative rivals are expected to gain ground.

But don't bet on it; friends in Tehran have said over the past few days that Ahmadinejad is as confident as ever and, backed by the all-powerful Supreme Leader and his friends in the Revolutionary Guards, is setting his sights on being re-elected in June.

For some Iranians, that would be the last straw.

Photo: please!don'tsmile
Rights: Creative Commons

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