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As Iran sanctions threaten, Iran sees new friend in Cambodia

Leaders from Iran and Cambodia met this month in their most senior exchange to date. Some say it is a sign that Iran sanctions are pushing Tehran to develop new trade partners.

By Stephen KurczyStaff writer / August 26, 2010

Iran sanctions: Cambodian Foreign Minister Hor Namhong speaks during a news conference in Phnom Penh August 6. 'To impose sanctions against Iran is not a solution,' Hor told reporters Aug. 16 in Phnom Penh, days after his meeting in Tehran with Iranian President Mahmoud Ahmadinejad.

Chor Sokunthea/Reuters

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Iran seems to have found a new friend in the unlikeliest of places: Cambodia. Tehran hosted a high-level delegation from the Southeast Asian nation earlier this month to discuss bilateral trade and mutual dislike of American "interference."

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It's the latest sign that the Islamic republic is seeking out new partners – no matter how small – in the face of increased sanctions.

"There is no doubt that Iran’s growing isolation, resulting from the force of UN sanctions, is behind Iran’s push to improve relations with Cambodia and other willing states," says Alon Ben-Meir of the Center for Global Affairs at New York University. "The sanctions against Iran are having a serious effect. For this reason, Iran at this juncture will trade with any country it may find. Cambodia happened to be an easy target because of its energy vulnerability."

In June, the United Nations, European Union, and United States all passed sanctions in an effort to target Iran's uranium-enrichment program.

"To impose sanctions against Iran is not a solution," Cambodian Foreign Minister Hor Namhong told reporters Aug. 16 in Phnom Penh, days after his meeting in Tehran with Iranian President Mahmoud Ahmadinejad. Mr. Hor advised "negotiations and engagement" instead.

Iran offers trade, technology

The two countries established formal relations in 1992 as Cambodia emerged from civil war, but Cambodian government spokesman Khieu Kanharith says this is the most senior bilateral exchange to date.

"Iran requested to have a diplomatic relation with Cambodia. We don't see any objection to that," says Mr. Khieu, who is also the minister of Information. "Our policy toward Middle Eastern countries is to sell more of our products, mainly agricultural, and try to get more knowledge on oil management."

The summit touched on trade, investment, tourism, and oil, which is notable in light of Cambodia's hopes to tap recently discovered offshore oil reserves. After years of exploration and speculation – from international firms such as Total and Chevron – oil production is projected to begin in 2012. Then, in mid-August, a top Cambodian official told Nikkei news agency that Cambodia is looking into nuclear technology and hopes to build its first nuclear power plant as early as 2020.

President Ahmadinejad "voiced readiness to share Iran's experiences with Cambodia in various fields of agriculture, science, technology, and research," according to Fars News Agency. The two sides agreed to establish a joint economic commission to explore opportunities, according to The Tehran Times.

Shared dislike of American 'interference'

They also found common ground in rejecting pressure from the US. “My country has always been opposed to the interference of the United States in other countries’ internal affairs," Hor said, according to the Islamic Republic News Agency (IRNA).

Economic ties remain minimal between Iran and Cambodia. The two countries’ trade value during the past Iranian calendar year (ending March 20, 2010) stood at $539,000, according to The Tehran Times. In the three months prior to June 21, Iran exported $120,000 and imported $66,000 to and from Cambodia.

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