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 Tehran had cause to celebrate: the Kremlin's decision a year ago
to press ahead with the stalled sale of the S-300 system was the
first clear evidence of a growing partnership between Russia and
Iran that has since turned the tide in Syria's civil war and is
testing U.S. influence in the Middle East.
But the delay in implementation of the deal also points to the
limitations of a relationship that is forged from a convergence of
interests rather than a shared worldview, with Iran's leadership
divided over ideology and Russia showing signs of reluctance to let
the alliance develop much more, according to diplomats, officials
and analysts interviewed by Reuters.
Some Iranian officials want a strategic alliance, a much deeper
relationship than now. But the Kremlin refers only to ongoing
cooperation with a new dimension because of the conflict in Syria,
in which both back Damascus.
"We are continuously developing friendly relations with Iran, but we
cannot really talk about a new paradigm in our relations," Kremlin
spokesman Dmitry Peskov said last month.
Russia agreed to sell the S-300 system to Iran in 2007 but froze the
deal in 2010 after sanctions were imposed on Tehran over its nuclear
program.
 Moscow lifted the self-imposed ban in April last year as Iran and
world powers got closer to the deal that led eventually to the
nuclear-related sanctions being lifted in exchange for Tehran
curbing its atomic program.
Russia is now weighing the financial and diplomatic benefits of arms
sales to Tehran against the risk of upsetting other countries
including Saudi Arabia, the United States and Israel, or seeing Iran
become too powerful.
"There is a military-economic aspect to this alliance which is
beneficial to both sides," said Maziar Behrooz, associate professor
of Mideast and Islamic history at San Francisco State University,
who has studied Iran's relationship with Russia.
"But on a geopolitical level, Iran and Russia can only form a
tactical short-term alliance, not a strategic one. I think the
ideological differences between the two are just too deep."
BACKING FOR DAMASCUS
The relationship, long cordial, appeared to reach a new level last
September when Russian President Vladimir Putin ordered a military
intervention in Syria in support of Iran's ally, President Bashar
al-Assad.
Iran had already deployed its Revolutionary Guards (IRGC), who had
rallied Assad's troops to check the opposition's momentum. But it
took Russian air power to break the stalemate and give Assad the
upper hand.
Militarily, the two powers proved complementary. Iran brought
disciplined ground troops who worked well with their local allies,
while Russia provided the first-rate air power that Iran and Assad
lack.
Diplomatically, the joint operations have made Tehran and Moscow
central to any discussion about the regional security architecture.
 That is important for Putin as he has sought to shore up alliances
in the region and increase Moscow's influence since Libyan leader
Muammar Gaddafi, a Russian ally, was killed.
How well Moscow will fare when it comes to winning lucrative
business contracts now the nuclear-related sanctions have been
lifted is less clear. There is little sign so far of Russian
companies making new inroads into Iran.
This is partly for ideological reasons. The Iranian establishment is
divided, with President Hassan Rouhani's faction more interested in
trading with the West than struggling against it, even if many U.S.
policies are still condemned.
Russia has little incentive to join the mostly Shi'ite "Axis of
Resistance" to Western interests in the region which is championed
by the more conservative Iranian faction as this could ruin its
relationships with other Middle Eastern powers such as Israel, Saudi
Arabia and Egypt.
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SECRET MEETINGS
Russia's first big intervention in the Middle East since the Cold
War followed months of secret meetings in Moscow between Putin and
Iranian officials, including IRGC commanders and Ali Akbar Velayati,
foreign policy advisor to Supreme Leader Ayatollah Ali Khamenei.
A close and exclusive alliance with Russia would suit Khamenei,
Iran's most powerful figure, who has blamed Western influence for
Iran's troubles and pushed hard to implement his "Look East" policy.
But it runs contrary to the policy of Iran's government, led by
Rouhani and Foreign Minister Mohammad Javad Zarif, who have courted
Western delegations on an almost weekly basis since the nuclear deal
was reached with world powers last July.
The Western-educated Rouhani is less inclined toward Russia and has
an uneasy relationship with Putin. Last November, during his first
visit to Tehran in eight years, Putin went straight from the airport
to meet Khamenei, rather than seeing Rouhani first as most visitors
do.
"Rouhani and Putin don't get along that great," an Iranian diplomat
told Reuters on condition of anonymity.
Some Iranian officials are also wary of getting too close to Russia,
which fought Britain for domination of 19th century Iran and
occupied the country during both World Wars.
"Russians have always used us as a tool in their foreign policy.
They never stayed committed to their alliance with any country,"
Abdullah Ramezanzadeh, who served as spokesman for former President
Mohammad Khatami, told Reuters from Tehran.
Putin has worked hard to improve relations with Iran. During the
November visit, he presented Khamenei with one of the world's oldest
copies of the Koran, which Russia had obtained during its occupation
of northern Iran in the 19th century.
The intervention in Syria has served as a distraction from economic
problems in Russia, deepened by international sanctions on Moscow
over its role in the Ukraine crisis which have forced Moscow to seek
new trade partners.
Trade with Iran was only $1.3 billion in 2015, according to Russian
data, though there are signs cooperation could pick up.
Russia says it is ready to start disbursing a $5-billion loan to
Tehran for financing infrastructure projects. A deal is also being
discussed for Russia to send oil and gas to northern Iran, where
supply is scarce, and for Iran to send oil and gas from its southern
fields to Russia's customers in the Gulf.
But the prospects for cooperation may be limited, sector analysts
say, as, to update its energy sector, Iran mainly needs technology
and equipment which Russia is also in need of.
Russia is also in talks to help upgrade Iran's dilapidated air force
by selling it Sukhoi Su-30 fighter jets but the deal would need the
approval of the United Nations Security Council and could further
strain Moscow's relations with Israel, Saudi Arabia and the United
States.
(Editing by Sam Wilkin, William Maclean and Timothy Heritage)
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