During the three years of occupation, Stalin had expanded Soviet political influence in Azerbaijan and the Kurdish area in northwestern Iran. On December 12, 1945, after weeks of violent clashes a Soviet-backed separatist People's Republic of Azerbaijan was founded. The Kurdish People's Republic was also established in late 1945. Iranian government troops sent to reestablish control were blocked by Soviet Red Army units. When the deadline for withdrawal arrived on March 2, 1946, six months after the end of World War II hostilities, the British began to withdraw, but Moscow balked, "citing threats to Soviet security."
Soviet troops did not withdraw from Iran proper until May, 1946 after receiving a promise of petroleum concessions. The Soviet republics in the north were soon overthrown and the oil concessions were revoked.