Table of Contents
NOTES
The US has told India and other countries to cut oil imports from Iran to “zero” by November 4 or face sanctions, making it clear that there would be no waivers to anyone.
Iran is India’s third-largest oil supplier behind Iraq and Saudi Arabia. Iran supplied 18.4 million tonnes of crude oil during April 2017 and January 2018 (first 10 months of
2017-18 fiscal).
WHY?
Last month Trump withdrew the US from the landmark Iran nuclear deal, re-imposing US
sanctions that had been suspended in return for curbs on Tehran’s nuclear programme.
Washington is stepping up pressure on all countries, including India and China, to completely stop buying oil from Iran.
JAPAN CHINA
“China and Iran are friendly countries to each other,” the Foreign Ministry’s Lu Kang told reporters Wednesday.
“We maintain normal exchanges and cooperation on the basis of conforming to our obligations under the international law, including in the fields of economy, trade and energy. This is beyond reproach.”
INDIA U.S – INDIA
“Sanctions are coming (on Iran) and we’re going forward on that, and with India and the U.S. building strong relationships we hoped that they would lessen their dependence on Iran,” Haley, a member of U.S. President Donald Trump’s cabinet, told two reporters after her
meeting with Modi in New Delhi.
CHABAHAR
• ‘PORT HAS TO HAPPEN’
• Haley said she also discussed with Modi the Indian-backed Chabahar port complex in Iran, being developed as part of a new transportation corridor for landlocked Afghanistan and which could open the way for millions of dollars in trade and cut Afghanistan’s dependence on neighboring Pakistan.
• “We know the port has to happen and the U.S. is going to work with India to do that,” Haley said. “We know that they’re being a great partner with us in Afghanistan and really trying to assist the U.S. and trying to do more. The port’s vital in trying to do that.”
BEST DEAL FOR INDIA
•To boost its sales to India, Iran recently offered virtually free shipping and an extended credit
period of 60 days.
•We can buy Basra Heavy, Saudi or Kuwait oil to replace Iran. Finding replacement barrels is not a problem, but it has to give the best economic value.
THE REAL TUSSLE U.S AND CHINA
•Iranian President Hassan Rouhani attended this month’s Shanghai Cooperation Organization summit in China’s
Shandong Province as an observer at Beijing’s invitation.
• He met there with Chinese President Xi Jinping, who
pledged to expand economic cooperation between the
two countries. China is among the parties to the nuclear
deal.
NOTES
• Washington’s use of the dollar as a weapon may not do much
harm to Beijing. China in March launched yuan-denominated
oil futures to promote the currency’s use in a market
dominated by the greenback.
• Iran reportedly also accepted yuan payments from China for
oil under similar sanctions in 2012.
• Cut off from other export markets, Iran may sell crude for
cheap to China, further exacerbating tensions between
Washington and Beijing.
THE DOLLAR POWER
Washington’s effort to use the dollar to force other
countries to fall in line may ultimately backfire by
encouraging a switch to other currencies.
India, another major importer of Iranian oil, paid for
it in rupees under the 2012 sanctions.
U.S INDIA RELATIONS GOING BAD?
•US postpones 2+2 dialogue with India; Are Iran oil
deals, Russia defence ties the reasons?
U.S ISOLATING ITSELF ON GLOBAL STAGE?
•Most countries refuse to comply with Iran sanctions
• Paris Climate Agreement backlash
• Sanctions on Russia impacting relations with India and
Turkey
•TradeWar
WhatsApp