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This is an archive article published on January 26, 2012

New Delhi’s sanction

Iranian oil imports will be constrained. India must seize opportunities in Gulf Arab states

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As the US and the EU tighten the noose around Iran and squeeze its oil and financial sectors,New Delhi’s ability to import a significant portion of its energy requirements from Tehran has been severely constrained. While India could easily do without the intensification of the Western confrontation with Iran,Delhi is not in a position to influence either party to back off. The UPA government might be well aware of this reality. But it has done little to educate the Indian political classes,let alone the public,of the need to hunker down,adapt and protect India’s energy and political interests in the Middle East.

After years of failure to stop Iran’s nuclear weapon programme,the US and EU are sleepwalking into yet another war in the Middle East that a crisis-ridden world economy can ill-afford. Nor is there any reason to believe Iran is interested in giving up its nuclear weapon programme and resolve the many outstanding issues with

the International Atomic Energy Agency. Delhi’s political posturing,with an eye to domestic audiences,on the rights and wrongs of the issues involved,will not do much for India. On the face of it,India is not obliged to abide by the unilateral Western sanctions against Iran,for these have not been endorsed by the UN Security Council. But the sanctions have been designed in such a way that Indian entities that continue to import oil and pay for them will have to bear much cost in dealing with the West.

The first task for India now is to make the best of the exceptions and deliberately designed loopholes in the US and EU measures against Iran. India’s second objective must be to quickly reduce its oil imports from Iran,which currently constitute nearly 15 per cent of its external supplies. A third task is to find alternative petroleum suppliers from around the world. Finally,India must unveil a visible and high-level political engagement with the Arab oil producers in the Persian Gulf,who will necessarily have a big part in replacing Iranian supplies. The Gulf Arab states,whose security is most threatened by Iran’s nuclear weapons,have repeatedly beseeched Delhi for political solidarity in recent months. India should no longer play hard to get.

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