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China's Imports Of Iranian Oil Push India To Ignore Russia Sanctions

Iran International Newsroom
Jul 8, 2022, 17:44 GMT+1Updated: 17:32 GMT+1
Russia's President Vladimir Putin shakes hands with India's Prime Minister Narendra Modi ahead of their meeting at Hyderabad House in New Delhi, India, December 6, 2021.
Russia's President Vladimir Putin shakes hands with India's Prime Minister Narendra Modi ahead of their meeting at Hyderabad House in New Delhi, India, December 6, 2021.

China’s growing imports of Iranian oil is one reason why India has not followed Western sanctions on Russian crude, more than tripling imports in recent months.

An analysis published by Reuters on Friday quotes Indian officials who said, “New Delhi wants to avoid repeating what it sees as the mistakes of the past: abiding by sanctions on Iran and winding down oil imports, only to see its main regional rival China continue unpunished and benefit economically.”

The result has been a huge leap in volumes from Russia. In May, India imported 819,000 barrels per day (bpd), from 277,000 bpd in April and 33,000 bpd a year ago. Russia is now the second biggest supplier to India, replacing Saudi Arabia, while Iraq continues to be the largest.

India abided by US sanctions when former US president Donald Trump withdrew from the 2015 nuclear agreement known as JCPOA and gradually imposed full oil export sanctions on Iran. But China continued buying small volumes until November 2020 when it began noticeably increasing imports of illicit Iranian shipments.

China has kept up larger Iranian oil imports and is now buying massive amounts of Russian oil at discount prices. According to various estimates Tehran is exporting around 750,000 barrels per day and China is by far the largest buyer.

The Biden Administration, which decided early on to start talks with Tehran to revive the JCPOA, has failed to put effective pressure on China to stop imports of Iranian crude, which also come with a discount.

This has convinced India not to join Western sanctions against Russia, seeing itself shortchanged by abiding with US sanctions on Iran, while its rival is getting cheap oil.

"India has the attitude that if China is buying, why wouldn't we?" Robin Mills, chief executive of energy consultancy Qamar Energy told Reuters.

"India doesn't want to be in the same position again when China continued to buy Iranian oil and India stopped it."

Last month, Indian Foreign Minister Subrahmanyam Jaishankar posed the question at a conference: "Why are Indian money and funds coming from India seen as funding the war (in Ukraine), when Europe also buys gas from Russia?"

Referring to US sanctions on Iranian and Venezuelan crude, he said: "They (Europe and the US) have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people; it's not a fair approach".

That all means New Delhi is reluctant to put US interests ahead of those of Russia, especially after it felt it was harmed economically by sanctions on oil from Iran and Venezuela.

Under Modi's nationalist government, India has pursued an assertive foreign policy, standing up to China in a two-year military border standoff and rejecting Western criticism of domestic policies some say are authoritarian and divisive.

Indian officials counter that what refiners are doing is legal and some European countries are still buying Russian oil and gas. Executives at state-owned and private refineries do not expect purchases of Russian crude to slow any time soon, the report said.

The United States has offered to sell more defense equipment and oil to India, for example, and New Delhi joined a U.S.-led trade partnership Indo-Pacific Economic Framework for Prosperity.

India is a member of the Quad alliance, which links it with the United States, Japan and Australia. India also signed a free trade agreement with Australia, talks for which initially began in 2011.

With reporting by Reuters

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Khamenei Calls For Muslim Unity, Slams Western Values

Jul 8, 2022, 15:40 GMT+1
•
Iran International Newsroom

In a message to world's Muslims, Ali Khamenei the ruler of the Islamic Republic of Iran has called for "unity and spirituality" while attacking Western values.

Khamenei’s Shiite followers call him the leader of the Muslim world, but his appeal reaches a tiny minority of Muslims who are overwhelmingly Sunni. He is known among many Sunnis as a man who has been sowing division among Muslims through his actions in Syria, Iraq, Yemen and elsewhere.

Meanwhile, his critics say that the extent of despotism and financial corruption in the system under his leadership leaves no room for spirituality.

Khamenei also repeated his favorite theory that the West tithers on the verge of defeat and collapse, at a time when the United States and Europe have shown strong unity to confront Russian aggression in Ukraine and NATO has just accepted Sweden and Finland as new members.

He said in his message on the occasion of the annual Hajj pilgrimage: "The Islamic nation can once again observe its unity and harmony in this clear, timeless mirror, and take this opportunity to turn away from factors that lead to disunity and division." The statement is in total contradiction to Khamenei’s and his government's behavior as they have not been able to maintain friendly ties with Muslim nations around Iran, including Saudi Arabia where millions of Muslims from other countries gather for the pilgrimage.

Nonetheless, Khamenei accused "the enemies of Muslim nations" of "weakening the two bolstering elixirs of Islamic unity and spirituality among our nations."

"The enemies of Islam strive to weaken spirituality by promoting a western lifestyle that is devoid of spirituality and which is rooted in a short-sighted, materialistic vision of the world," Khamenei reiterated. "on the other hand," he stressed "everyone must work to overcome the factors that foster division and disunity."

Khamenei in his message emphasized the role of ideas such as "Islamic awakening, resistance," and what he called "the political governance in the Islamic Republic of Iran," as the elements of unity in the Muslim world. This comes while his idea of resistance has so far been nothing more than reckless anti-Americanism and opposition to the coexistence of regional nations with Israel.

He further charged that " the Arrogant Powers, and the United States are worried about such a trend in the Islamic world and employ all their resources in order to confront it. The tactics they employ range from dominating the media and soft warfare, to warmongering and starting proxy wars, political espionage, and acts of inducement, and threatening, bribing and other forms of enticement." He added that "the United States is using Israel as a tool for this all-out effort." Khamenei simply ignored Israel's alliance with most of the region's Muslim nations to prevent the Islamic Republic's atrocities.

Meanwhile, on the same day that Khamenei's message was sent out, his senior adviser for international affairs, Former Foreign Minister Ali Akbar Velayati whose Cold War era ideas is believed to have some influence on Khamenei, said "Iran cannot tolerate NATO's presence at its borders," mindless of the fact, that Turkey, a NATO member state for more than 70 years is a neighbor of Iran.

Velayati also echoed Khamenei's belief that the United States and Europe have been in decline during recent years, without providing any proof for the claim.

IAEA's Grossi Warns Iran Nuclear Program May Be Copied

Jul 7, 2022, 13:35 GMT+1
•
Iran International Newsroom

Iran’s developing nuclear program could lead other countries to follow suit, according to Rafael Mariano Grossi, head of the International Atomic Energy Agency.

In a lecture delivered in Australia Tuesday, Grossi said that “challenging” diplomacy aimed at restoring the 2015 Iran nuclear was taking place in an “important” context.

“The lack of progress in verifying the peaceful nature of Iran’s nuclear program may affect other countries’ decisions,” Grossi said at the Coral Bell School of Asia Pacific Affairs, Canberra. “We are now in a situation where Iran’s neighbors could start to fear the worst and plan accordingly. There are countries in the region today looking very carefully at what is happening with Iran, and tensions in the region are rising. Political leaders have on occasionally openly stated they would actively seek nuclear weapons if Iran were to pose a nuclear threat.”

Grossi did not elaborate. There have been intermittent, but unsubstantiated reports, that Saudi Arabia has an arrangement with Pakistan over an option of importing technology needed for nuclear weapons. Saudi Arabia plans to operate two nuclear reactors for civil purposes by 2040. Like Tehran, Riyadh is a signatory of the Nuclear Non-Proliferation treaty (NPT).

Grossi said “a defining moment” was being reached for “global nuclear non-proliferation,” with continuing “tendencies towards proliferation” despite a “strong” international non-proliferation framework with 192 NPT signatories and 175 member states in the International Atomic Energy Agency (IAEA).

The IAEA director-general emphasized the importance of additional protocols, agreements reached with non-nuclear states giving greater inspections powers to the agency than required under the more limited NPT ‘safeguards’ arrangements. He argued that additional protocols developed by the 1990s reflected experience of Iraq, where a declared nuclear program in the 1980s hid an undeclared program that was “far from peaceful.”

Grossi with Iran's nuclear chief Mohammad Eslami in Tehran, March 5, 2022
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Grossi with Iran's nuclear chief Mohammad Eslami in Tehran, March 5, 2022

Grossi also cited a lack of agency access in the nuclear programs of apartheid South Africa, North Korea, Libya, and Syria.

Iran – ‘periods of tension and cooperation’

Turning to Iran, Grossi surveyed 20 years of “countless interactions between the IAEA and Iran aimed at verifying that Iran’s nuclear program is purely peaceful.” He referred to “UN Security Council resolutions demanding that Iran cease all enrichment… times when Iran provisionally applied an additional protocol and times when it did not…[as well as] periods of cooperation and periods of tension.”

Grossi recalled the days of the 2015 nuclear agreement, the JCPOA (Joint Comprehensive Plan of Action), which ended with United States withdrawal in 2018 and Iran in 2019 beginning to exceed JCPOA limits on its nuclear program.

“The IAEA was charged [under the JCPOA] with verifying that Iran respected the new restrictions on its nuclear program,” Grossi said. “Of great importance also was Iran’s acceptance once more of the additional protocol.”

‘Credible Information’

Iran ceased to apply the additional protocol in early 2021, leading to restrictions on IAEA inspectors’ access. A series of ad hoc arrangements reached by Grossi with Tehran did not prevent the IAEA chief from declaring in June that with the prevailing level of access he would within four weeks being unable to certify the peaceful nature of the Iran nuclear program.

In his speech Tuesday, Grossi also highlighted agency dissatisfaction at Iran’s explanation of uranium traces found at sites linked to work before 2003 in the face of “assembled credible information indicating a possible military dimension.” The IAEA board last month passed a resolution censuring Iran over its alleged failure to resolve these “longstanding safeguards issues.”

Grossi defended a return to the JCPOA in the face of last week’s failure by the US and Iran, meeting in Doha ‘proximity’ talks, to agree a path back to compliance. The IAEA chief said that after decades of work to combat proliferation “what remains constant is that the Agency is the ultimate guarantee of any agreement.” Without IAEA participation, he argued, “any agreement is unverifiable.”

New US Sanctions Hit Iran’s Oil And Petchem Sector

Jul 6, 2022, 21:27 GMT+1

The US Treasury has issued sanctions on a new array of individuals and entities that help the Islamic Republic of Iran sell its petroleum and petrochemical products. 

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) said on Wednesday that the international network used a web of Persian Gulf-based front companies to facilitate the delivery and sale of hundreds of millions of dollars’ worth of Iranian goods from Iranian companies to East Asia.

Two UAE-based Iranian nationals, Morteza Rajabieslami and Mahdieh Sanchuli, two vessels (BS BRAVO and SUMMER 5) as well as 13 companies including Iran's Persian Gulf Star Oil Company, Jam Petrochemical Company, and several firms in UAE and Hong Kong have been added to OFAC's Specially Designated Nationals list.

“While the United States is committed to achieving an agreement with Iran that seeks a mutual return to compliance with the Joint Comprehensive Plan of Action, we will continue to use all our authorities to enforce sanctions on the sale of Iranian petroleum and petrochemicals,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.

Secretary of State Antony Blinken also announced the new sanctions on the Iranian petroleum and petrochemical producers, transporters, and front companies in a tweet, saying that “Absent a commitment from Iran to return to the JCPOA, an outcome we continue to pursue, we will keep using our authorities to target Iran's exports of energy products.”

Some of the new sanctions were levied pursuant to Executive Order 13846, which would be lifted in case the US returns to the JCPOA, whose prospects are withering. 

Brussels Confirms Iran Holding Belgian Man On Spying Charges

Jul 5, 2022, 16:21 GMT+1

Brussels has confirmed that Iran has been holding a Belgian man for the past four months under “espionage” charges as it weighed a controversial prisoner swap treaty with Tehran.

Belgium’s Justice Minister Vincent Van Quickenborne said Tuesday the man was seized in Iran on February 24 and has been in “illegal” detention since. 

He did not identify the man but he was most likely referring to Olivier Vandecasteele, a 41-year-old Belgian aid worker who has served in various international humanitarian organizations since at least 2006.

The announcement by the ministry came after Iran International revealed the identity of the Belgian national, who had previously worked in India, Afghanistan, and Mali and later became the director of Norwegian Refugee Council’s Iran operations in 2015 and assumed the same position with Relief International in Iran in 2020. On July 2, an informed source had told Iran International that at least two Belgian citizens are currently in prison in Iran.

A draft law proposed by the Belgian government to the parliament could put the seal of approval on an agreement with Iran, which could lead to the release of Assadollah Assadi, an Iranian diplomat serving a 20-year prison sentence in Belgium for planning a terror attack in Paris four years ago.

Numerous people and groups from around the world have warned about the imminent perilous consequences of the prisoner exchange treaty, calling “the green light to state terrorism” that only emboldens the Islamic Republic.

Hamburg Report Highlights Iran Buying ‘Proliferation’ Equipment

Jul 5, 2022, 13:52 GMT+1

The Jerusalem Post Monday cited an annual security report by Hamburg highlighting September’s arrest of a man for exporting equipment to Iran without licenses.

The man, named only as ‘Alexander J’ due to German privacy laws, allegedly between 2018 and 2020 sold Iran laboratory equipment, including four spectrometers, that required special licenses and was worth nearly 1 million Euros.

The Hamburg report said two alleged accomplices were still sought, and listed the case under ‘proliferation,’ which it defined as “the procurement of products for the production of nuclear, biological and chemical weapons of mass destruction and the corresponding carrier technology (rocket technology), including the know-how required for this."

Iran's regime is mentioned 82 times in the 194-page Hamburg report that focuses on a wide range of security threats to Hamburg's democracy.

At the time of Alexander J’s arrest in September, German police searched offices and apartments in 11 separate locations, across three German states – Hamburg, Schleswig-Holstein and North Rhine-Westphalia.

A report last year from the Washington-based Institute for Science and International Security (Isis) said the case reflected “the continued effort of Iran to break trade control laws and sanctions of other nations to procure items for its nuclear and ballistic missile programs.” Isis said Iran had in the Alexander J case not sought permits required under the terms of the 2015 Iran nuclear deal for equipment that “could contribute to sensitive activities, including enrichment-related activities, reprocessing or heavy-water-related activities.”