Indrani Bagchi  

Despite Recent Dialogue, No Clarity On Oil Imports From Tehran

Iran continues to be a thorny issue between India and US as both countries prepare for the inaugural ‘2+2’ dialogue on September 6 where minister of external affairs Sushma Swaraj and defence minister Nirmala Sitharaman will host US secretary of state Michael R Pompeo and US secretary of defence James Mattis. In the past month, US and India have held two rounds of talks, the most recent being on August 16, but clarity eludes both sides. Indian officials expect some understanding to come about after the talks.

The key problem India is wrestling with is that it is unable to pin the US down to defining what they mean by “significant reductions” in oil imports from Iran. During the Obama administration sanctions on Iran, “significant reductions” in oil imports from Iran was quantifiable to a 20% reduction every six months. In the Trump administration, India is not clear what that means, especially as it pushes for some understanding from the US.

This week, the US’ newly appointed special representative on Iran, Brian Hook, told reporters, “... our goal is to reduce every country’s import of Iranian oil to zero by November 4th, and we are prepared to work with countries that are reducing their imports on a case-bycase basis. Those sanctions will come into effect on November 5th. Those will include sanctions on Iran’s energy sector, transactions by foreign financial institutions with the Central Bank of Iran, Iran’s shipping and shipbuilding sectors, among others.”

“Oil imports is not our only issue here,” said sources. Chahbahar, fertilisers, and connectivity are added to the

mix. The US, said sources, is also having to factor in its allies, and other interlinked strategic objectives. China is less inclined to abide by US strictures, while EU is in talks with India and other countries to save Iran nuclear deal.

The atmosphere between US and India is considerably lighter after India got a waiver in the CAATSA provisions and a tier-1 approval in the strategic trade authorisation by the US. However, some concerns remain.

While the Trump administration has taken a fairly tough approach to Pakistan, there appears to have been a slackening of pace on sanctions against Pakistan army.US sources had indicated that they might impose targeted sanctions on specific members of the army in Pakistan. But two things appear to have slowed that process — first, the ongoing USTaliban talks in Qatar which needs active support by Pakistan; second, with a new government in Islamabad, there is a wait-and-watch attitude. The US has imposed sanctions on specific commanders and officers of the Myanmar army this week, indicating that this is a route that remains available to Washington, should things go south with Pakistan.

India is trying to bring the US in as a member of the International Solar Alliance , which would be a feather in India’s cap if Washington agrees. The Trump administration had walked away from the Paris Accord in 2017.

India is ready to sign the second defence interoperability agreement, Communications Compatibility and Security Agreement with the US, second of three “foundational” agreements. The third agreement, Basic Exchange and Cooperation Agreement, is still in progress.

Indrani.Bagchi@timesgroup.com

Courtesy: Times of India: 21 Aug 2018