Will withdraw ‘special privileges’ if oil imports are lowered under US pressure, Iran warns India

• Iran’s deputy ambassador warned that Iran will withdraw the ‘special privileges’ it gives India if the country lowers its import of Iranian oil.
  
• He also criticised India for not making investments in the expansion of Chabahar port in Iran as promised with the signing of a pact in May 2016.
  
• The warning from Iran came after Trump withdrew USA from the Iran nuclear deal and called out to the Asian countries to bring their Iranian oil import to “zero”.
  

On Tuesday, Iran’s deputy ambassador and charge d’affaires, Massoud Rezvanian Rahaghi, clearly announced that India will lose its ‘special privileges’ if it cuts down on its import of Iranian oil or if it tries to replace the oil with imports from Saudi Arabia, Russia, Iraq, the US and others.

He further added that if India does so, “It may have to revert to dollar-denominated imports which mean higher CAD (Current Account Deficit) and deprivation of all other privileges Iran has offered to India”.

He made this statement during a seminar on ‘emerging challenges and opportunities in the global diplomacy and its impact on bilateral ties with India’.

After Iraq and Saudi Arabia, Iran is India's third-largest oil supplier. In return, India buys 13% of the total exported crude oil from Iran, which is a huge proposition in itself.

He further took the seminar as an opportunity to criticise India for not fulfilling its promise of making investments in the expansion of the Chabahar port in Iran. The port is considered to be a gateway to trade opportunities between the two countries and India had signed a pact in May 2016 promising to invest.

This reaction from Iran comes as a response to the US policy which called out countries to start reducing the import of oil from Iran and bring it to zero by 4 November. The failure to do so would result in the imposition of sanctions from the US. The policy was announced after Trump pulled out from the Iran nuclear deal - the Joint Comprehensive Plan of Action (JCPOA) - which had been signed by Obama in 2015.

Iran called US’ approach a “selfish” one and said that it must abandon “its policy of resorting to threats or use of force”.

Referring to the US sanctions on oil import from Iran, Rahaghi made it a point to mention that his country has been a reliable energy partner for India and has always followed a “rationale pricing” of oil which ensures the interest of both, consumers and suppliers.

He also called India to “work together to immunise the relationship between the two countries” and proposed the adoption of necessary instruments and mechanisms like setting up banking relations, opening new transaction routes and helping each other’s markets and business communities.

He further went on to suggest that a regional dialogue forum should be set up in the Persian Gulf and West Asia to resolve terrorism and regional crises.

According to the data from shipping and industry sources, India's oil imports from Iran declined by 15.9 % in June which was the first month after the US gave its ultimatum. However, the Ministry of External Affairs has maintained that India would consult “all stakeholders” in the matter to ensure energy security.