Skip to comments.US threatens sanctions against India over Iran oil
Posted on 03/15/2012 9:10:40 PM PDT by Little Pig
WASHINGTON: The Obama administration is threatening to impose sanctions on India over its continued economic ties with Iran amid disagreements between Washington and New Delhi over how much and how soon the latter is reducing oil imports from the (in US eyes) pariah nation.
India has "failed" to reduce its purchase of Iranian oil and if it doesn't do so, President Barack Obama may be "forced" to impose sanction, unnamed administration officials were cited as telling Bloomberg wire service. A decision in this regard could come as early as June 28, they added, implicitly offering New Delhi a ten- week window to show a decline in Iranian oil imports.
Indian officials have contested the US assessment by insisting New Delhi is scaling down Iranian oil imports with more reduction in the pipeline, but that concession has been offset by India's commerce ministry's well-publicized efforts to ramp up trade with Iran in other areas, a move that has not gone unnoticed by the powerful pro-Israeli lobby in US.
The potent American Jewish Committee (AJC), which holds Israeli interests dear to its heart, raged against an Indian business delegation being shepherded to Iran by the Indian commerce ministry, pointing to it as an example of New Delhi's perfidy at a time Israel is India's close military and counter-terrorism partner.
That prompted a strong rebuttal from the Indian embassy in Washington, accusing certain lobbies of presenting a "distorted picture of New Delhi's foreign policy objectives and energy security needs" by selective use of data about its imports from Iran.
But the anti-Iran lobby in US has been galvanized by a report on Wednesday from the International Energy Agency (IEA), showing that India and South Korea "sharply" increased their oil imports from Iran in January.
However, India has informally conveyed to Washington that it has advised its refineries, many of which are geared towards processing Iranian crude, to seek alternate supplies and gradually reduce their dependence on Iran. That process may take some time to kick in since annual crude contracts with Iran are April to March, so the reduction will start to show from next month.
India has enough time to show compliance since the US law relating to sanctions vis-a-vis Iran kicks in only if countries don't make a "significant" cuts in their Iranian crude oil purchases during the first half of this year. The law does not specify by what percentage a nation must reduce its imports to qualify for an exemption from sanctions, so countries like South Korea and Japan have been negotiating with Washington the quantum of cuts they can live with. India is also believed to be in discussion with U.S in this matter.
While the impending Indian compliance has been quietly acknowledged by some Obama administration officials, the hardline pro-Israeli lobby in US is champing at the bit. At a Congressional hearing earlier this month Secretary of State Hillary Clinton told lawmakers that while the US remains concerned about India's links with Iran, she acknowledged that New Delhi is ''heading in the right direction''.
"In fact, I think in a number of instances, the actions of countries and their banks are better than the public statements that we sometimes hear them making," Clinton said in an indication of the Indian assurances.
The Obama administration itself is in a bind over squeezing too hard and tightening oil supplies across the world. While Washington has offered to wean India and other countries from Iranian oil by arranging supplies from Saudi Arabia and Iraq, that could come at its own expense and rising oil prices. Already, gas prices are close to $ 4 a gallon at US pumps, and it is a well-acknowledged fact that the fortunes of US politicians running for high office is linked to pain (or otherwise) at the pump.
If India drops Iran's oil this will be also expensive. At this point India will have to compare financial harm from obeying the White House to the financial harm from disobeying. Let alone the political damage.
Iran makes and sells oil, a product that is in high demand. The USA makes ... what?
And here is the problem. As soon as a major country tells the USA to mind its own business, the USA loses weight on the political arena. But perhaps that's the goal.
The 0bama Regime is so disasterous it boggles the mind. Hitlery Clinton, you are a real piece of worthless matter.
This administration has been butt backwards from the start
Were I in India’s shoes, I might tell the US that if they go through with sanctions, India will make their business climate extremely receptive to businesses currently operating out of the US. That India would set up special incentives for such businesses that move operations to India so their employees receive healthcare (the good hospitals in India’s system are quite good, and very inexpensive), deals on housing, and other perqs. Salaries in India are closing in on the developed world, and go much farther than salaries in the US. Sure it might take a little while to start biting, but with things the way they are in the US right now, I’d bet more than a few companies would pull stakes and move.
As it stands now however, this insufferable imbicile/piker has managed to alienate nearly every international ally we had.
Indian refineries, especially those owned by private companies, are designed to process Persian crude, which is qualitatively different from Arabian crude. For India to suddenly switch from Persian to Arabian crude, expensive re-fitting of the refineries will have to be performed. Who pays?
The downtime required to re-fit the refineries will cause oil prices will shoot up drastically in a large oil-consumption market such as India’s. It will worsen the steep inflation already troubling the country’s economy.
Lastly, India is not stupid. An anticipated American pull-out from Afghanistan will require India to develop closer relations with Iran and Russia, to ensure that the former Northern Alliance (which took over Afghanistan after the Taliban were deposed) stays in power, instead of what will be an obvious restoration of the Taliban by Pakistan.
In other words, India won’t budge from doing what it sees are for its interests. With America supporting, aiding and enabling suicidal Islamist regimes like those of Saudi Arabia and Pakistan, India won’t have a very difficult choice to make in rejecting American concerns.
Its not going to happen. This is smoke and mirrors from Obama. There are numerous military contracts worth $8 to 9 billion dollars at stake. Such as equipment including C-130J aircraft, Boeing Business Jets for VVIP transportation, Harpoon Missiles, Sensor Fused Weapons, C-17 Globemaster III and the INS Jalashwa.
You are correct
INS Jalashwa was formerly the USS Trenton and was bought from the US for $48 million dollars. Its a retired Austin-class Landing Platform Dock. The Indian Navy felt she needed an amphibious ship after the 2004 earthquake.
In this situation, it’s important to understand there is no such thing as a single entity that can be described as “India”.
There is a huge petro chemical import/export industry in India, run by tens of thousands of traders, who in turn supply petro chemicals to tens of thousands of factories big andsmall that employee millions upon millions of Indians.
There is no centralized state entity that could ever even attempt to control the recording of the import/export flow of petro products, let alone a politician or bureaucrat in India foolish enough to even consider the preposterous proposal of controlling and restricting the import of petro products.
The Indian bureaucracy knows how to take care of it’s myriad individual self interests and the interests of it’s patrons in private industry and labor unions.
Those idiots in the United States have no relevance to the import/export market in India.
This is in vast contrast to true client states of the US, such as S.Korea and Japan.
Not dumb. Intentionally stabbing an ally in the back is traitorous...
Since Obama, all of our friends is foes and all of our foes is friends.
Oh and to add: too bad the dolt who wrote this felt obligated to go on an anti-Israel screed. Moron clearly doesn’t know squat about how obastard feels about and treats Israel...
Admiral Roughead made them part of our thousand ship navy so we can’t embargo them or they’ll take our naval strength away.
That’s how he has justified reducing our fleet to incompetence.
In Admiral Roughead’s agenda, we have to be nice to India and Japan as India will provide ships for our Navy, since we won’t do that ourselves, and Japan will be the Merchant Marine, since we don’t want one of our own.
This policy is a direct result of the falsely named ‘free trade’ agenda which was designed to destroy American sovereignty and give trashnational corporations control of our government.
Look it up— Roughead and thousand ship navy. He first started spouting this treason in the mid 2000’s.
And we’re selling them something like 600 tons of wheat.
My guess is the antipathy towards Israel is a result of the tension between India and Israel right now. India and Israel are ostensibly working together on a number of things, including military hardware contracts. The author also likely thinks that there are US-based Jewish lobby groups that tend to be single-issue.
Hey Mo Fo Obama......You dummy head.....You communist thug who loves China....Hey you islamic terrorist that loves Pakistan......Don’t bully India.
India is no longer a “3rd world” dependent......You see.....it is a Democracy.....It is a Free country.....It is thriving with innovation based on free people....
Don’t F with it.....You dummy head.....Don’t be a dummy head.
India is not a export dependent economy to western countries. Even a recession in US will have the least effect on India vis-a-vis south-eastern countries such as China, Japan etc.
There is no strategic or regional gain to India by severing ties with Iran. India also needs all the oil it can import. Iran is not sending or supporting terror in India. All terror incidents in India have been traced to origins in Pakistan.
obama is supporting Pakistan because it is Muslim and antagonizing India becuase it is not Muslim.
The foolish American electorate allowed a Muslim traitor to assume the office of President of the U.S.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.