Data allays Iranian concerns of India’s resilience in the face of US sanctions on it

Mumbai:

Iranian Foreign Minister Mohammad Javad Zarif may have recently expressed grave concerns over India’s resilience in the face of US sanctions on it. Interacting with Indian women journalists recently, Zarif, a career diplomat himself, expressed concern over the slow pace of development of Chabahar port and dwindling crude oil imports from Iran by India. In a subtle arm-twisting, referring to US pressurizing India not to buy oil from Iran, he said that if India could not lift oil from Iran, then Iran too could not buy rice from India.

At the core of this diplomatic necessities or call it subtle arm-twisting, the fact remains that India volunteered to develop the Chabahar port which was conceived by the last Shah of Iran in 1973. The bilateral agreement to develop two berths at Chabahar port was signed with Iran only in 2015 and the first phase of the port which was inaugurated in December 2017.

Although the Chabahar project does not come under the purview of the US sanctions, the Iran-US military stand-off at the Strait of Hormuz, is the real issue. Zarif must be well aware of the fact that the first phase of Chabahar port is being operated by India Ports Global, a joint venture of Jawaharlal Nehru Port Trust (JNPT) and Kandla port trust. The operationalization of the first phase has already had its impact which has resulted in port traffic from Karachi port in Pakistan being diverted to Chabahar port in Iran.

The strategic location of the port in Sistan-Baluchistan province on Iran’s south coast, provides direct access to Central Asian countries. It boosts direct trade between Iran, India and Afghanistan and gives India access to Afghanistan. Plans are afoot to develop rail and road connectivity between Chabahar, cities in Afghanistan, Central Asian countries like Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, and to Europe via Turkey.

The Chabahar port also provides direct access to India’s Farkhor air base of Indian Air Force in Tajikistan. Another reason for the slow progress on Chabahar, besides US sanctions, could well be the slowdown in India’s own economy. Iran is trying to raise the Chinese bogey pointing to the Chinese interests in developing the berths at Chabahar, in a bid to push and prod India.

As for Foreign Minister Mohammad Javad Zarif’s concern over India’s reluctance to lift crude oil from Iran amidst US sanctions, too is heightened. According to Union Ministry for Petroleum and Natural Gas, besides Iraq 23 billion USD, Saudi Arabia 21.2 billion USD, Iran accounts for 13 billion US Dollars worth crude oil imports by India. Another reason for slowing down of oil imports is that India’s oil import bill has shot up by 42 percent to 125 USD or Rs 881.282 crore for March 2019.

India imports its crude oil requirements from 15 countries and Iran is the third largest. In 2006 India imported 99.40 metric tons of crude oil at a price of Rs 1,71,702 crores. That crude oil import has in 2019 reached 228.6 metric tons costing India’s treasury by Rs 8,81,282 crores.

Zarif may be feeling that India does not want to antagonize US president Donald Trump as it wants to be seen on the right side of Trump. He further chides India by arguing that Trump does not have any right side. Furthermore, he tries to caution India, that it might end up being another target of the US. Zarif does acknowledge the fact that at present US president Donald Trump needs Modi for Indian American votes for a second term in office. He was referring to the September 22, 2019 “Howdy Modi” event in Houston, Texas, the energy capital of the world.

Mumbai:

Iranian Foreign Minister Mohammad Javad Zarif may have recently expressed grave concerns over India’s resilience in the face of US sanctions on it. Interacting with Indian women journalists recently, Zarif, a career diplomat himself, expressed concern over the slow pace of development of Chabahar port and dwindling crude oil imports from Iran by India. In a subtle arm-twisting, referring to US pressurizing India not to buy oil from Iran, he said that if India could not lift oil from Iran, then Iran too could not buy rice from India.

At the core of this diplomatic necessities or call it subtle arm-twisting, the fact remains that India volunteered to develop the Chabahar port which was conceived by the last Shah of Iran in 1973. The bilateral agreement to develop two berths at Chabahar port was signed with Iran only in 2015 and the first phase of the port which was inaugurated in December 2017.

Although the Chabahar project does not come under the purview of the US sanctions, the Iran-US military stand-off at the Strait of Hormuz, is the real issue. Zarif must be well aware of the fact that the first phase of Chabahar port is being operated by India Ports Global, a joint venture of Jawaharlal Nehru Port Trust (JNPT) and Kandla port trust. The operationalization of the first phase has already had its impact which has resulted in port traffic from Karachi port in Pakistan being diverted to Chabahar port in Iran.

The strategic location of the port in Sistan-Baluchistan province on Iran’s south coast, provides direct access to Central Asian countries. It boosts direct trade between Iran, India and Afghanistan and gives India access to Afghanistan. Plans are afoot to develop rail and road connectivity between Chabahar, cities in Afghanistan, Central Asian countries like Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, and to Europe via Turkey.

The Chabahar port also provides direct access to India’s Farkhor air base of Indian Air Force in Tajikistan. Another reason for the slow progress on Chabahar, besides US sanctions, could well be the slowdown in India’s own economy. Iran is trying to raise the Chinese bogey pointing to the Chinese interests in developing the berths at Chabahar, in a bid to push and prod India.

As for Foreign Minister Mohammad Javad Zarif’s concern over India’s reluctance to lift crude oil from Iran amidst US sanctions, too is heightened. According to Union Ministry for Petroleum and Natural Gas, besides Iraq 23 billion USD, Saudi Arabia 21.2 billion USD, Iran accounts for 13 billion US Dollars worth crude oil imports by India. Another reason for slowing down of oil imports is that India’s oil import bill has shot up by 42 percent to 125 USD or Rs 881.282 crore for March 2019.

India imports its crude oil requirements from 15 countries and Iran is the third largest. In 2006 India imported 99.40 metric tons of crude oil at a price of Rs 1,71,702 crores. That crude oil import has in 2019 reached 228.6 metric tons costing India’s treasury by Rs 8,81,282 crores.

Zarif may be feeling that India does not want to antagonize US president Donald Trump as it wants to be seen on the right side of Trump. He further chides India by arguing that Trump does not have any right side. Furthermore, he tries to caution India, that it might end up being another target of the US. Zarif does acknowledge the fact that at present US president Donald Trump needs Modi for Indian American votes for a second term in office. He was referring to the September 22, 2019 “Howdy Modi” event in Houston, Texas, the energy capital of the world.