US indicates sanctions won't threaten Indian investment in Iran

Washington: No country will get concessions in the US sanctions against Iran. The United States had warned all the eight countries including India which were exempt, to stop their trade with Iran or face US sanctions but India did not take any stance in the matter. However, the United States has indicated that there is no threat to the Indian investments in Iran. The US Department of State spokesperson said that the Chabahar Port developed by India in Iran is an exception and there was no threat to the Indian investment due to President Trump’s decisions.

The Chabahar port in Iran, developed by India is considered to be strategically very important. It enables India to increase its trade with Afghanistan and the central Asian countries, leaving Pakistan out of the equation. Also, China is developing the Gwadar port in Pakistan under the CPEC. China is also exploiting the military advantages of the port as well. Nevertheless, India has turned the tables on Pakistan and China, with the development of the Chabahar Port in Iran. Therefore, the project is considered to be very significant for India.

The United States once again, imposed sanctions against Iran, after withdrawing from the nuclear deal signed in 2015. Albeit, eight allies including India, were given six months to bring their oil transactions with Iran to zero. The grace period is ending soon, and the United States has refused to award an extension. The Trump administration has warned that the countries should stop the oil imports from Iran or they would also have to face sanctions, as per the US laws. Till date, the Indian position has always been that India only follows the directives of the United Nations (UN). Also, India has still not reacted to the US warning to stop oil transactions with Iran. Although the US sanctions were believed to have a significant adverse impact on the Indian investment in the Chabahar port in Iran. However, the United States has said that the project was an exception and the Indian investment here would not be affected by the Iran sanctions.

Chabahar port project is not only important to India and Iran, but it is equally important to Afghanistan. As per analysts, the United States has taken the stance regarding the Indian investment in Chabahar port, as Washington has its interests in the project.

India will get additional supplies from other major oil producing countries to compensate for the loss of Iranian oil, Petroleum, Natural Gas Minister Dharmendra Pradhan said.

The United States has provided the deadline of May 1 for stopping the oil purchase from Iran. Otherwise, the countries which do not comply would face the US sanctions, the United States said on Monday. Therefore, it was expected to affect the oil imports of India, which is one of the largest buyers from Iran. Keeping in view the Indian requirements for oil, we will import it from other major oil producing countries to compensate for the loss, Petroleum Minister Dharmendra Pradhan informed.

Petroleum and Natural Gas Minister Pradhan said that the Indian policy was ready, as per the requirements of all the Indian refinery projects. Meanwhile, although fresh sanctions have been imposed on Iran, the oil production would not be expeditiously increased, Saudi Arabia said. Therefore, a possible increase in crude rates is expected in the international market.