Last week, a Committee of Secretaries headed by the National Security Advisor decided to first approach Washington to keep Indian entities out of the sanctions using the exemption clause wherein the US President certifies that the waiver is vital to US national security interests.
Pending that, Indian enterprises would be advised to consider venturing into Iran in consortium with Russian, Chinese or Kuwaiti companies to make it harder for the US or the European Union to single out a country or company.
Another option from the Ministry of External Affairs is to create new corporate entities that will not have any financial exposure in the US or EU so that they are insulated from any retaliation.
“Political engagement with Iran, while of great importance, may not be sufficient to ensure that our interests are protected. Economic engagement with Iran is also necessary and would help us in promoting our energy security, connectivity and opening of new markets, and to underpin our political objectives,” said the MEA paper on “International Sanctions on Iran and Way Forward for India-Iran Relations”.
While the prime reason for India’s continued interest in Iran is the need for energy security through steady flow of crude oil and natural gas and acquisition of oil and gas fields there, a concern was raised at the July 20 CoS meeting that India’s withdrawal would give China an additional handle to enlarge its presence in Iran.
The MEA said that China was taking “a conscious decision to step into the vacuum created by the exit of western and other companies” since sanctions were strengthened in 2007. It had stepped up its petroleum product exports to Iran and signed three pacts on oil and gas fields.
Other “creative mechanisms” recommended by the MEA were:
n A Rupee-Rial arrangement for settling bilateral trade to avoid a ban on Indian banks from access to the US or EU financial system.
n An arrangement to open letters of credit in Rial, as suggested by the Iranians at the 16th session of the India-Iran Joint Commission.
n Investment by Indian firms through joint ventures in mining, fertilizer, food processing, pharmaceuticals and automobile projects that are not currently sanctioned.
n Opening of warehouses for fast-moving Indian products in Iranian Free Trade Zone with a mechanism to provide insurance cover for political and economic risks.
n Possible involvement of state-run companies to develop the Chabahar port and rail project for access to Afghanistan and Central Asia.
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US, UN economical sanctions on Iran being affected Iranian peoples and neighbour developing countries like India as well. The sanctions were imposed against Iran´s ambition of production of Nuclear weapons.In this critical juncture, India´s continuous existence of its venture´s in Iran has come in Question.The countries such as Russia and China are not having indulgence on Economical Sanction of US, UN and EU on Iran; because of their Economic and Political engagement and relation ship with Iran to maintain the bilateral advantage of commercial purposses. India should also to keep its venture´s out of door of the US, UN Sanctions in accordance with the "Exemption Clause" of International Consortium, might be prerogative.India has to engage economically & politically with Iran to maintain steady course of crude oil, gas and acquisition of oil fields there. It is not advisable to recall India´s under- takings,by infiniting China, US also make profit by India´s venture´s