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Despite US pressure, India will remain an ally says Iran

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Despite US pressure, India will remain an ally: Iran
Indrani Baghchi| TNN| July 17, 2018

NEW DELHI: “There are many routes by which Iran and India can cooperate in important fields especially energy and Chabahar. We know that there are pressures from outside but we count on the Indian government to make proper decisions in favour of the national interest of India,” said Abbas Araghchi, Iran’s deputy foreign minister after a day of discussions with Indian officials.
India, he said, had done it in the past — balancing its relations between the US and India. It can do it again. This time, Iranian sources said, it would be easier because the EU also wants to save the nuclear deal/JCPOA. So together everyone can find ways around the imminent sanctions.
Questioned about whether India had provided assurances, he said, “I have a very good sense that cooperation between the two countries would continueas we are allies in many areas. Of course there are difficulties but we have to work hard to face those challenges and find solutions.” Iranian officials said they were told by European countries that India and EU would work together to save the deal. Indian officials were not ready to comment.
On Chabahar, Iran told India that with the port already starting to work, the operations would be turned over to an Indian entity in the near future. A statement by MEA at the end of the talks said, “Both sides reviewed and positively assessed the progress in implementation of decisions taken during the State visit of the President of Iran to India in February 2018, especially for enhancing connectivity and strengthening cooperation in trade and economic issues and in the promotion of people-to-people exchanges.” The Indian side was led by foreign secretary Vijay Gokhale.
While EU countries are looking for solutions around the US’departure from the JCPOA, Iran has made it clear that if it is forced to kill the deal, it could revisit its nuclear doctrine. The Iranian President recently raised the fact that the safety of the crucial Straits of Hormuz would not be guaranteed.
Sources said Iran had said, “if we are suffering, with nowhere to sell our oil to, do you think we will allow the Straits to be peaceful?” If this happens, global energy crisis could reach mammoth proportions. Iran has also refused to link the JCPOA with conversations on the regional security situation, including Syria, Yemen, Bahrain, or even their missile programme. Iran, they said, has told its interlocutors that Tehran would not consider negotiations on any other issue until after the JCPOA was sorted out.
However, they said, Tehran had convinced the Houthis in Yemen to hold their fire during the month of Ramzan. But the Europeans, who were brokering those negotiations, failed to get Saudi Arabia to agree.
The Iranian nuclear deal is “in the ICU”. Iranians believe India has an important role in trying to save it.
 
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What the slaves of Iranian Mulla in Pakistan say about this ?
 
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Tue Jul 17, 2018 2:29
Deputy FM: Iran, India Determined to Strengthen All-Out Ties


TEHRAN (Fars News Agency)- Iranian Deputy Foreign Minister Seyed Abbas Araqchi announced that Tehran and New Delhi's firm determination to expand relations in all fields was reiterated during his recent visit to India.
"The latest developments related to the nuclear deal and ways to continue mutual cooperation after the US withdrawal from the agreement were the most important issues of this round of talks," Araqchi wrote on his Instagram page on Monday, releasing an image of his recent meeting with Indian Foreign Secretary Vijay Gokhale.

He added that positive progress was made in cooperation between the two countries, specially in the fields of energy, trade and transit after the 2017 visit by Iranian President Hassan Rouhani to India.

"Iran and India are seriously determined to improve relations in different dimensions and arenas based on common interests and mutual respect," Araqchi said.

Iran is the third-biggest oil supplier to India, which, in turn, is the Islamic Republic’s top oil client after China.

India imports a large quantity of oil from Iran and has committed an investment of $500 million for the development of the crucial Chabahar port.

India has given the go-ahead to a plan by Iran's Pasragad Bank to open a branch in Mumbai, media reports said last week.

"Iran's Bank Pasargad had received an authorization to open a branch in Mumbai," the Indian Express reported.

The New Delhi also authorized reviving a banking mechanism that would allow payments to Iran for oil purchases, the Indian newspaper added.

The authorization was accordingly conveyed to the Reserve Bank of India (RBI) by India’s Finance Ministry.

It noted that the channel that would be created through Bank Pasargad would allow arrangements to settle trade in mutual currencies of both countries.

In the wake of US sanctions, India might explore the possibility of reviving a mechanism to settle oil payments involving Iran’s Rial and India’s Rupee that was in place between the two countries in the past.

The Rupee-Rial arrangement was used to buy oil from Iran before US sanctions were lifted against it three years ago. Under this mechanism, India paid in Euros to clear 55 percent of its dues, while the remaining 45 percent payment was remitted in Rupees into accounts Iranian oil companies had with UCO Bank.

The presence of an Iranian bank in India would open up a significant financial channel that would ensure the smooth flow of funds between the two countries, the daily added.
 
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Both India and Iran have limited options. India may temporarily cut some oil import but Iran will have to understand that is India protecting it's entities from being sanctioned.
 
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Both India and Iran have limited options. India may temporarily cut some oil import but Iran will have to understand that is India protecting it's entities from being sanctioned.

There are always payment systems which can be done outside of the SWIFT system.

Remember everything is not controlled by US. Especially since there is something called the Dark Net which in the right hands, could ease the payments problem.

If SWIFT was the only way to pay, US-averse countries would have been dead long ago.

Creating a special purpose vehicle in Mauritius or some other neutral tiny financial haven is the best way to route payments through without using any US-based mechanism or dollars. Barter should do fine. Why not authorize a smaller government bank to set up an SPV overseas in some tiny island neutral country and channel the funds from there?

Even if that entity is sanctioned, it wouldn't really matter to India.
 
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iran is a dushman. We are not their ally nor do we want their low-quality sour crude.
 
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Iran trying to keep every one happy. Iran badly needs India for its oil, otherwise the economy will collapse, Iran needs Pakistan to cover its a@@ from any elements trying to destabilize sistan ( Baloch dominated Sunni area in Iran , bordering Pakistan) . At the same time Iran wants to continue its proxies in Lebanon, Syria and Iraq. I am afraid all of this cant continue for long. Iran portrays itself more powerful than it actually is. Also the growing anger within Iran is not helping the situation. Its a like a bubble it will surely burst before Trump's administration is over.
 
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There are always payment systems which can be done outside of the SWIFT system.

Remember everything is not controlled by US. Especially since there is something called the Dark Net which in the right hands, could ease the payments problem.

If SWIFT was the only way to pay, US-averse countries would have been dead long ago.

Creating a special purpose vehicle in Mauritius or some other neutral tiny financial haven is the best way to route payments through without using any US-based mechanism or dollars. Barter should do fine. Why not authorize a smaller government bank to set up an SPV overseas in some tiny island neutral country and channel the funds from there?

Even if that entity is sanctioned, it wouldn't really matter to India.

And you believe US won't know what is happening behind the curtains or do you think they will look the other way? We can buy oil from anywhere, the question is of losing an ally. The government has to make the decision is Iran a trust-able ally so as to absorb the fiction in US-India or India-Israel relations for them. In the past they have threaten to/also removed special privileges given to India once sanctions were removed, handed over oil blocks discovered by Indian companies to Russian company due to pricing issues, endorsing Pakistan's position on Kashmir and much more.
 
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Also the title is kind of misleading, its not Iran but India who is more important here. India has relations with several other countries including the US , which India regards highly. Question is what Iran can offer to India?? Oil? India has money and can buy from any where She wants.
 
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