China's Xi Calls For Quick Resolution Of Iran Nuclear Dispute

Xi had invited Raisi to Beijing, and their meeting comes as both Iran and China face rising tensions with the United States over a range of global issues.

Ahead of his visit, Raisi wrote an editorial in China's state-controlled People's Daily in which he said both countries believe that unilateralism and "violent" measures such as the imposition of "unjust" sanctions are the main causes of crises and insecurity in the world.

In the editorial, Raisi described China as an "old friend", and said Iran's efforts to strengthen bilateral relations would be unaffected by regional and international situations.

The two governments are expected to sign cooperation documents during the visit, according to Iran's state news agency IRNA. A 25-year strategic partnership deal signed in 2021 has remained largely on paper.

Xi visited Saudi Arabia in December and also met members of the Gulf Cooperation Council, followed by a joint statement in which the issue of three Iranian islands in the Persian Gulf was mentioned as a claim pursued by the United Arab Emirates.

The Iranian public showed a strong reaction once the joint statement was reported by Persian media, accusing their own government of being so weak that its ally China was subtly endorsing the UAE claim.

Xi and Raisi pledged to forge a stronger alliance when they last met in person on the sidelines of the Shanghai Cooperation Organization summit in the Uzbek city of Samarkand in September.

In a statement released Monday, Saudi Foreign Ministry said the Arab Kingdom’s Foreign Minister Faisal bin Farhan and Borrell exchanged views regarding Iran’s nuclear program and reviewed relations between Riyadh and the European Union.

“The two sides also discussed the latest regional and international developments and the efforts made to strengthen international peace and security,” added the statement.

However, the European Union in its statement did not mention the discussion of Iran’s issue during the talks between the two sides.

“Mr. Borrell, convened a meeting in Brussels with His Highness Prince Faisal bin Farhan, Foreign Minister of the Kingdom of Saudi Arabia, and Secretary-General of the League of Arab States, Mr. Aboul Gheit. They discussed the Middle East Peace Process, the increasing number of victims of violence, conflict and occupation, and the absence of a political perspective for a peaceful solution,” said the EU statement.

Earlier, the US Department of State announced a senior government delegation will travel to Saudi Arabia “to attend meetings which will focus on three priority sets: Integrated Air and Missile Defense and Maritime Security, Iran, and Counterterrorism.”

The US delegation will be led by Special Envoy for Iran Rob Malley, added the State Department.

During his weekly press conference on Monday, Foreign Ministry spokesman Nasser Kanaani referred to a meeting with Iraqi Foreign Minister Fuad Hussein and United States Special Envoy for Iran Robert Malley, and said Tehran uses all diplomatic capacities to realize the Islamic Republic’s national interests.

“Some governments have already played a role in this regard in good faith. Some governments are interested in using the capacity of their relations with both sides, and we will always welcome these joint efforts in good faith,” he added. “If the Iraqi government wants to play a role in this area, we take it seriously as the country is our friend, neighbor and brother, and we will use the capacities of the Iraqi government.”

Tehran, facing serious economic and political challenges insists that there is still a chance to restore the Joint Comprehensive Plan of Action, the JCPOA, while the US, which withdrew from the original deal under former US president Donald Trump, has repeatedly announced that it is no longer focused on the deal.

Iranian Foreign Minister Hossein Amir-Abdollahian held a phone call with his Iraqi counterpart on Friday, a day before the Iraqi foreign minister met with Malley. According to the official readout of the meeting by the Iraqi foreign ministry, Hussein and Malley discussed the Iran nuclear talks and the European's attitude toward suspending them. Malley praised Iraq's diplomatic role and the initiatives it launched to ease the tension in the region, the statement added.

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Since the current wave of antigovernment protests engulfed Iran in September, the Biden administration has announced that talks to revive the nuclear deal are not their priority anymore. Considering the international outcry over the Islamic Republic’s crackdown on dissent and human rights violations as well as the growing military ties between Tehran and Moscow, including from the US Congress, the prospects of saving the JCPOA is dimmer than ever.

Moreover, Kanaani expressed Iran’s readiness to exchange prisoners with the US in an “unconditional” manner without linking the swap to other issues, complaining that despite Iran’s goodwill, Washington has not taken an encouraging measure in this regard.

On Saturday, Hussein -- accompanied by Central Bank of Iraq Governor Ali al-Allaq -- met with Secretary of State Antony Blinken, Deputy Secretary of the Treasury Wally Adeyemo, and many other US officials and business leaders to discuss a host of economic issues. But an urgent issue was how to prevent Iran from using Iraq’s banking ties with the United States to launder US dollars and circumvent Washington’s sanctions. 

In an interview with Al-Monitor in Washington on Sunday, Hussein said that "It’s no secret that I am in touch with both Iranian and American officials,” adding that “Both sides trust us, and that’s a good thing... It’s in Iraq’s interest that there be less tension between Washington and Tehran."

“I will continue these contacts,” said Hussein. “The US is an important ally, and Iran is an important neighbor, with whom we share many common interests, including a border, religion, culture, economics and trade. I hope both sides will start talking to each other again, but that’s their decision,” he added.

Elsewhere in his remarks, Kanaani touched on the issue of relations between Tehran and Riyadh, stressing the need for diplomacy to return the ties between Saudi Arabia and Iran back on track. Tehran welcomes any mediation by the Iraqi government and hopes that the efforts would improve relations between Saudi Arabia and Iran, he said. 

Venezuela's state-run energy firm PDVSA since last year has redoubled efforts to buy and lease oil tankers to rebuild its own fleet. Its maritime operations have suffered from a long-standing lack of capital and U.S. sanctions that have made it difficult to obtain insurance and receive classifications essential to navigate in international waters.

The two new Aframax tankers, to be named India Urquia and India Mara, will cost 31.66 million euros ($33.77 million) each, an internal PDVSA document detailing the proposed agreement showed.

The vessels will be built by Iran Marine Industrial Company (SADRA) at its Bushehr shipyard, which built two previous vessels for PDVSA, the Aframaxes Arita and Anita, that can each carry 500,000-800,000 barrels of oil.

"(Construction of) the India Urquia must start soon," one of the sources said.

REPAID DEBT

The agreement will come after Venezuela settled an outstanding debt to Iran with fuel, according to the document, one of the reasons why the contract has not worked as originally planned.

PDVSA in late 2021 delivered a 644,000-barrel fuel oil cargo to Iran valued at 33.9 million euros.

"The shipyard received 30.34 million euros to settle the outstanding debt for tanker Arita," and another 1.99 million euros went in August to pay accumulated demurrage fees, the document said.

Both the Arita and the second tanker, recently renamed Anita, faced long delays to begin navigating amid the unpaid debts and PDVSA maritime arm's struggles to secure insurance and seaworthy classifications.

The Arita - now renamed Colon - first set sail in 2017 but was later arrested by a vessel operator over unpaid bills. It was returned to PDVSA in 2019 and has mostly remained in Venezuelan waters since.

The Anita departed Iran in late December carrying an Iranian condensate cargo for PDVSA, one of the sources said. It has not yet arrived in Venezuela, according to tanker tracking services.

A separate vessel chartered by Iran's state firm Naftiran Intertrade Company (NICO), the supertanker Wen Yao, also is on its way to Venezuela carrying Iranian condensate as part of an oil swap with PDVSA, monitoring firm TankerTrackers.com said.

By the end of the contract, PDVSA will have paid Iran about 157 million euros for the four vessels, according to the proposal drafted in the document. The deal was first announced in 2006 with much fanfare by Tehran and the government of then-President Hugo Chavez.

Some of the vessels to be handed over by Iran could be operated by third parties, according to one person.

The document did not detail delivery dates for the two tankers to come. PDVSA and SADRA did not reply to requests for comment.

Iran's and Venezuela's oil sectors are under U.S. sanctions that make it difficult to obtain services for vessels built or sailing under those countries' flags, and expose the ships' cargoes to the risk of seizures and retentions.

Washington has in recent years expanded the list of blacklisted tankers linked to Iran and Venezuela, and imposed sanctions on their state oil companies and their maritime arms.

During a media briefing earlier on Monday, Iran’s Foreign Ministry spokesman Nasser Kanaani highlighted the importance of Ebrahim Raisi’s trip on the development of Tehran-Beijing bilateral ties, saying, “The visit will be made upon an official invitation by the Chinese President Xi Jinping. 

“The visit is particularly important from a political perspective. It indicates the existence of a proper political atmosphere in relations and emphasizes the highest political will from the leaders of the two countries to expand bilateral ties based on mutual interests,” he noted. 

China’s Xi visited Saudi Arabia in December and also met members of the Gulf Cooperation Council, followed by a joint statement in which the issue of three Iranian islands in the Persian Gulf was mentioned as a claim pursued by the United Arab Emirates.

The Iranian public showed a strong reaction once the joint statement was reported by Persian media, accusing the Islamic Republic authorities of being so weak that its ally China was subtly endorsing the UAE claim.

Kanaani described the deal signed between Iran and China in March 2021 as “a roadmap that outlines the general path and long-term horizon of cooperation between the two countries.” He added that there was a 43-percent growth in Iran-China economic and commercial relations last year, with China being Iran’s first export destination and the second source of imports.

However, there have been other reports in Iranian media saying that trade has declined since mid-2022.

During the meeting with Khamenei, Raisi gave a report on the agenda of the trip and the planned meetings. The readout of the meeting was not released to the media. 

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There are reports that Raisi will follow up on the so-called the 25-year comprehensive strategic partnership agreement, which so far has been nothing more than a wish list without a practical implementation plan.

The Islamic Republic is not only facing a strong challenge by dissidents and opponents at home, but also grapples with a serious economic crisis.

In January, a former Iranian ambassador to China said Tehran-Beijing ties are overestimated and only worked as a bargaining chip for China to secure deals with Saudi Arabia. Mohammad-Hossein Malaek, who served as Tehran’s envoy for four years under former president Mohammad Khatami, added that the agreement is a document without any value, especially following the visit by Xi to Saudi Arabia in December, when the two sides agreed “on the need to strengthen cooperation to ensure the peaceful nature of Iran’s nuclear program,” calling on Tehran to cooperate with the International Atomic Energy Agency (IAEA) and to “maintain the non-proliferation regime.”

Raisi himself also penned an op-ed article published in the People’s Daily, the official newspaper of the Central Committee of the Chinese Communist Party (CCP), emphasizing that “As two living and dynamic human civilizations, Iran and China were connected to each other via the historic Silk Road, and ascertained the fact that prosperity and happiness as desirable popular goals can only be achieved through interaction and cooperation.”

About the 25-year agreement, he claimed that the deal was signed to develop mutual cooperation in various fields because both Tehran and Beijing pursue similar approaches vis-à-vis international developments and are opposed to imperialism as well as unilateralism – a clear reference to the United States. 

Wang Wenbin, the spokesman of the Chinese Ministry of Foreign Affairs, said Monday that "This is President Raisi's first visit to China in office. During the visit, President Xi Jinping will hold talks with President Raisi to jointly chart the course for and steer the future development of China-Iran relations, and have in-depth exchange of views on regional and international issues of common concern."

He also echoed sentiments similar to those of Raisi about traditional friendship, saying that “To consolidate and develop China-Iran relations are their joint strategic choice.”

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“In recent years, under the guidance of President Xi and President Raisi, the China-Iran relations have maintained a sound momentum of development, with political mutual trust consolidated continuously and practical cooperation in various fields making steady progress,” he added. 

The Chinese spokesman also talked about the so-called strategic agreement, noting that “Taking this visit as an opportunity, China looks forward to working with Iran to further advance China-Iran comprehensive strategic partnership and playing a constructive role in enhancing unity and cooperation among countries in the Middle East and promoting regional security and stability.” 

Iranian state media reported that during Raisi’s three-day visit, mechanisms to make the deal operational will be finalized. In a televised interview Sunday night, the political affairs deputy head of President's Office, Mohammad Jamshidi, said, "We are after establishing broad-scale economic cooperation with China, whose framework is the comprehensive Iran-China cooperation document." “We have advanced the mechanisms for implementing the comprehensive agreement between Iran and China, which was a deal on paper at the beginning of this administration. The agreement’s finalization will be followed up during this trip.”

Many Iranians have expressed resentment over the 25-year cooperation agreement with China and a proposed 20-year deal with Russia, saying it is a sell-out. Although Iran has not revealed the details of the agreement with China and what it will entail in political, economic and military terms, some social media users go as far as claiming that the Islamic Republic is "selling out the country and its people" to China and Russia.

Iran has once and again indicated its intention to rely more on Asian countries, particularly China for trade relations as talks with the United States and Europe to resolve differences over Tehran’s nuclear program have not succeeded so far and US sanctions remain in place. However, Beijing has so far has not seriously challenged US sanctions, as it has cultivated closer ties with the Persian Gulf Arab countries and Israel.