Observers expected that Yevgeny Primakov, who replaced Andrei Kozyrev as Russia's foreign minister in early 1996, would activate Russian policy in the Gulf. Recent reports seemingly have confirmed this expectation. Russia has signed energy agreements with Iraq worth up to $10 million that are to go into effect once UN sanctions are lifted. And recently Russia has reached an agreement with Iran on delivery of defence-related goods totalling $4 billion over the next 4-5 years. Iran is seeking a long-term stable agreement with Russia to replace the one that Mikhail Gorbachov negotiated in 1989. As of now Russia is already selling Iran $500 million a year in arms, which makes up almost 85 per cent of Iran’s total imports from Russia