UPDATE: Source: US exit from Iran deal to raise dependency on Russia

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MOSCOW, May 10 (PRIME) -- The U.S’ decision to quit a nuclear deal with Iran will increase economic dependency of the Middle Eastern state on Russia, a source with the Russian government’s foreign trade block told PRIME on Thursday.

“Growth in Iran’s economic dependency on Russia. More contracts on group A goods (production equipment) from Russia. Increa sing turnover,” the source said.

On Tuesday, U.S. President Donald Trump said his government plans to quit a nuclear program deal with Iran signed by Russia, the U.S., the U.K., China, France and Germany in 2015. He also announced resumption of sanctions against Iran which were suspended as the result of the agreement.

In January-March, trade turnover between Russia and Iran rose 18% on the year to U.S. $475.8 million, according to the Federal Customs Service, with grain, ferrous metals, oil and timber being the major Russian export items.

Deputy head of the Research and Forecast Department at Analytical Credit Rating Agency (ACRA) Zhannur Ashigali said that sanctions against Iran are unlikely to harm its relations with Russia because of a low trade turnover between the states.

But he said that cooperation with the Eurasian Economic Union (EAEU), comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, may be hurt. In April, Russia’s government approved a temporary agreement to create a free trade zone between EAEU and Iran for four years.

CEO of the Russian National Reinsurance Company (RNRC) Nikolai Galushkin said that the sanctions will not hurt Russia’s insurance market.

Acting Communications and Mass Media Minister Nikolai Nikiforov said that Russia sees no reason for ceasing IT cooperation with Iran.

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