As Russia's international isolation grows following Western sanctions over its invasion of Ukraine, the Kremlin is seeking to pivot Russia towards the Middle East, Asia and Africa and find new clients for the country's embattled space programme.
Russian space Chief Yury Borisov hailed "an important milestone in Russian-Iranian bilateral cooperation, opening the way to the implementation of new and even larger projects", speaking at the Moscow-controlled Baikonur cosmodrome in the Kazakh steppe.
Iran's Telecommunications Minister Issa Zarepour, who also attended the launch, called the launch of the Khayyam satellite "historic" and "a turning point for the start of a new interaction in the field of space between our two countries".
Iran, which has maintained ties with Moscow and refrained from criticism of the Ukraine invasion, has sought to deflect suspicions that Moscow could use Khayyam to spy on Ukraine.
Last week, The Washington Post quoted anonymous Western intelligence officials as saying that Russia "plans to use the satellite for several months or longer" to assist its war efforts before allowing Iran to take control.
But the Iran Space Agency (ISA) said, less than two hours after the satellite was launched on a Soyuz-2.1b rocket, that "ground stations of the Iran Space Agency" had already received "first telemetric data".
The space agency stressed on Sunday that the Islamic republic would control the satellite "from day one" in an apparent reaction to the Post's report.
"No third country is able to access the information" sent by the satellite due to its "encrypted algorithm", it said.
The purpose of Khayyam is to "monitor the country's borders", enhance agricultural productivity and monitor water resources and natural disasters, according to the space agency.
Khayyam, apparently named after the 11th-century Persian polymath Omar Khayyam, will not be the first Iranian satellite that Russia has put into space.
In 2005, Iran's Sina-1 satellite was deployed from Russia's Plesetsk cosmodrome.
The United States -- which quit the landmark Joint Comprehensive Plan of Action or JCPOA in 2018 under then-president Donald Trump -- has accused Iran of effectively supporting Russia's war against Ukraine while adopting a "veil of neutrality".
Russian President Vladimir Putin met Iranian counterpart Ebrahim Raisi and Supreme Leader Ayatollah Ali Khamenei in Tehran last month -- one of his few trips abroad since Moscow's February 24 invasion.
Iran's Khamenei called for "long-term cooperation" with Russia during their meeting, and Tehran has refused to join international condemnation of Moscow's invasion of its pro-Western neighbour.
Iran insists its space programme is for civilian and defence purposes only, and does not breach the 2015 nuclear deal, or any other international agreement.
Western governments worry that satellite launch systems incorporate technologies interchangeable with those used in ballistic missiles capable of delivering a nuclear warhead, something Iran has always denied wanting to build.
Iran successfully put its first military satellite into orbit in April 2020, drawing a sharp rebuke from the United States.
In a statement on the eve of the Khayyam launch, ISA praised "the high reliability factor of the Soyuz launcher".
Borisov, who last month replaced bombastic nationalist Dmitry Rogozin as head of the Russian space agency Roscosmos, has acknowledged that the national space industry is in a "difficult situation" amid tensions with the West.
Russia will continue its space programme but end activities at the International Space Station -- an outlier of cooperation between Moscow and the West -- after 2024, he said.