BP halts work on gas field over US sanctions on Iran
Press TV – May 23, 2018
British oil company BP says it has halted work on a gas field which it co-owns with National Iranian Oil Company (NIOC) in the North Sea, citing US plans to reimpose sanctions on the Islamic Republic.
NIOC owns 50% of the Rhum field northeast of Aberdeen and BP holds the other half, which it plans to sell to UK-listed producer Serica Energy.
“BP has decided to defer some planned work on the Rhum gas field in the North Sea while we seek clarity on the potential impact on the field of recent US government decisions regarding Iran,” the company said in a statement on Tuesday.
Current operations at Rhum such as provisions of goods, services and support by “certain US persons” are carried out under a US license which is due to expire at the end of September.
Serica said it expected those operations to be affected by US sanctions, “in particular, the new sanctions regime announced by the US government on 8 May.”
The company is looking to secure a waiver from renewed US sanctions against Iran in order for production at the key offshore field to continue, Serica said Tuesday.
It is also working closely with BP and NIOC to evaluate the potential impact of the sanctions on production at Rhum which accounts for around 4% of UK gas output of around 38.1 billion cubic meters.
Rhum was discovered in 1977 by a joint venture between the Iranian Oil Company UK Ltd and BP which has a long history of operation in Iran.
BP started life as the Anglo-Persian Oil Company in 1908 before parting ways with Iran and becoming British Petroleum.
The company shut down Rhum in 2010 even before the West began imposing intensified sanctions on Iran a year later. It resumed production in 2014 after securing an exemption.
The new shutdown is set to further disappoint Iran which has been seeking concrete guarantees on receiving economic benefits of the nuclear deal, only to be given verbal pledges by the European governments instead.
Germany said on Tuesday there was only so much it could do, making it clear that Europe could not entirely shield companies from US sanctions.
“We will help where we can, but there is no way of completely averting the consequences of this unilateral withdrawal,” Economy Minister Peter Altmaier told a newspaper.
His statements were echoed by Luxembourg’s Foreign Minister Jean Asselborn who said there were limits to the European Union’s powers to persuade its larger firms to stay in Iran in the face of threatened US sanctions.
“We know there are hardly any larger companies in Europe that do not also trade with the United States. The pressure on European companies from the US is quite large,” he told reporters in Brussels. “We are in the situation that we’re in.”
OMV committed to Iran project
Nevertheless, Austrian energy group OMV said it has not halted its planned energy projects in Iran.
An Iranian official said earlier this month that OMV, Russia’s Lukoil and China National Petroleum Company (CNPC) had announced interest in the exploration blocks which include both known, highly-potential blocks and new ones.
OMV’s upstream chief Johann Pleininger said on Tuesday the group was monitoring political developments in the United States and the European Union very closely.
“The project has not come to a standstill, it is continuing,” Pleininger was quoted as saying, adding that “no investments have been made yet.”
OMV signed a memorandum of understanding in May 2016 to carry out projects in four blocks in the Zagros sedimentary area.
Pullout of Iranian Forces, Hezbollah Units From Syria Out of Question – Damascus
Sputnik | May 23, 2018
The withdrawal of Iranian forces and units of the Lebanese movement Hezbollah from Syria is not on the discussion agenda, Syrian Deputy Foreign Minister Faisal Mikdad told Sputnik.
“This topic is not even on the agenda of discussion, since it concerns the sovereignty of Syria. We cannot let anyone even raise this issue. Those who ask for something like that — and this is definitely not our Russian friends — are considering the possibility of intervention in all parts of Syria, including the support of terrorists in Syria and elsewhere in the region,” Mikdad said.
According to the Syrian diplomat, Damascus “highly appreciates” the help of friendly forces from Russia and advisers from Iran and Hezbollah in the struggle against terrorists.
The statements by the United States about its intention to withdraw troops from Syria and replace them with Arab forces are aimed at drawing the Arab countries in direct conflict with Damascus, Mikdad said.
“The main goal of such statements is to pump the money out of the Arab countries. This will force them to pay more to the US treasury, which may be empty. As well as drawing the Arab states in direct conflict, as far as I can guess — with the Syrian government, and this is a dangerous situation,” Mikdad said.
According to Mikdad, Washington will ultimately not withdraw its troops.
On Monday, US Secretary of State Michael Pompeo gave a keynote speech on US policy toward Iran, voicing 12 demands for Tehran to fulfill following Washington’s unilateral withdrawal from the Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA).
The commander of the Islamic Revolutionary Guard Corps (IRGC) has slammed the address made by US Secretary of State Mike Pompeo.
Iranian President Hassan Rouhani said that the world cannot accept that Washington makes unilateral decisions for all nations.
On May 8, Trump withdrew the United States from the Iran nuclear deal and Treasury immediately began to reimpose all sanctions against Tehran. The JCPOA — signed by Iran, the P5+1 and the European Union in 2015 — requires that Tehran allow inspections to ensure the peaceful nature of its nuclear program in exchange for sanctions relief.
US-Led Coalition Deliberately Destroyed Oil Wells in Syria
The US-led coalition has been conducting airstrikes in the Arab Republic since 2014 without either a UN mandate or the Syrian government’s consent.
The international coalition led by the United States has deliberately bombed oil wells in Syria, so that the government would not be able to use them, Mikdad said.
“They made it necessary to spend tens of millions of dollars to resume work at these [oil] fields,” Mikdad added.
The US-led coalition, which has been carrying out airstrikes in Syria since 2014 without Damascus’ or UN’s approval, has yet to comment on the statement.
The United States continues its support for terrorists in Syria by financing and supplying them with arms, Faisal Mekdad said.
“I believe that the oxygen for terrorist groups comes from the United States,” Mekdad said.
The Syrian minister noted that Damascus had heard “many times since the start of the crisis in 2011” the US statements on the reduction or termination of its support to the opposition in Syria.
“Meanwhile, [militant] groups are being provided with additional funding and arms,” Mekdad stressed.
According to the minister, after the liberation of Eastern Ghouta and the town of Hajar Aswad from terrorists, the Syrian army discovered large stocks of arms, recently delivered from Western countries and the United States.
“The United States must stop supporting terrorists and respect Syria’s sovereignty and choice of the Syrian people,” the diplomat underlined.
A military-diplomatic source earlier told Sputnik that militants from the Nusra Front terrorist group, banned in Russia, and the Free Syrian Army (FSA) were expanding the controlled territories in southern Syria to create an autonomy under the patronage of the United States. On April 19, Russian Foreign Ministry’s spokeswoman Maria Zakharova said that Moscow also had this information.
The CBS TV channel reported on May 18, citing US President Donald Trump administration officials, that the administration had withdrawn all assistance from northwestern Syria, where anti-Syrian government forces and Turkey are operating. According to the broadcaster, tens of millions of dollars will be cut from previous efforts, backed by the United States, to “strengthen and stabilize the local society.”
Constitutional Commission
Syrian authorities have not finalized a list of candidates for participation in the committee on Syria’s constitution in Geneva, however there are a lot of specialists and experts, who could represent Damascus in the body, Syrian Faisal Mekdad stated.
On Thursday, Russian President Vladimir Putin held talks with his Syrian counterpart Bashar Assad. The Russian leader said that Moscow welcomed and would support the decision of Assad to send his representatives to the Constitutional Commission in Geneva.
“It is too early to speak about [candidates], but there are many people, who are able to represent Syria and the Syrian government in these talks. We have many experts… in this sphere, who could participate in these talks,” Mekdad said.
The diplomat added that the constitutional amendments were the Syrian domestic issue and foreigners should not interfere in this process.
“There are several issues that are needed to be revised and we are ready to reconsider them,” the deputy foreign minister said, adding that it was necessary to understand, which “positive options” could be added to the constitution.
The settlement process for the Syrian conflict, which broke out in 2011, has been discussed on a number of international platforms, such as those in Geneva and Astana and the Syrian National Dialogue Congress in Russia’s Sochi. The main result of the Sochi congress was the creation of the Constitutional Commission that would work in Geneva and focus on amending Syria’s existing constitution.
Journey of an Israeli in Iran
By Miko Peled | American Herald Tribune | May 22, 2018
Trump’s declaration regarding the US backing out of the Iran agreement came just days before my trip to Iran was confirmed and my visa was approved. I was asked by several people if I was still going, thinking that Trump’s declaration that sanctions were going to be reinstated was a de facto declaration of war on Iran. I wasn’t going to let Donald Trump dictate where I was or was not going and certainly I was not going to cancel a trip into which so much effort had been placed by my hosts. My only concern was that I might get stopped and questioned by the authorities upon my return to the US.
I was interested to see Iran and to hear what people in Iran thought of Trump’s declaration and also how they felt regarding Israel’s constant accusations and threats of attack. I had a clue of what Iranian attitudes might be thanks to a piece written by Orly Noy in the progressive Hebrew online magazine Mekomit. Orly Noy is an Israeli journalist who was born and raised in Iran and is fluent in Farsi. In this piece, she quoted responses from people in Iran as they were expressed on social media. One response came after Israeli Prime Minister Benjamin Netanyahu made the display of documents he alleged were smuggled out of Iran by Mossad agents. There were hundreds of thousands of documents weighing a total of half a ton in which, so Netanyahu claims, it was made clear that Iran was lying and was not abiding by the agreement. In response to this one Iranian wrote, “Netanyahu finally discovered our secret intent: to attack Israel with fifty thousand paper airplanes.” Other responses were equally dismissive.
My first impression of Iran and its people was the calm and cleanliness one feels even in a large city like Mashhad, which has a population of five million and was my first point of entry. And, unlike the Middle-East and Europe, in Iran, it is rare to see people smoke. Mashhad, is considered a holy city and it is the home of the Imam Reza shrine, which I was told can accommodate all five million people within its compound during prayer. I visited the shrine along with a few friends between midnight and 2 AM and still there were many people there worshipping, some sitting in silent contemplation and there were even families enjoying a late-night picnic. Returning to the hotel I could not help mentioning to my friends that there are not many cities of that size in the world where one feels completely comfortable and safe to walk at 2 o’clock in the morning.
The most common response I received when asking people about their thoughts and concerns on the issue of the sanctions and Israeli threats was a smile, “We have been living under sanctions for many years and the lifting of the sanctions in 2013 brought very little change. So now we are going to live with sanctions again.” As for the Israeli threats, “we are not afraid, we are strong and will defend our land as we have always done.” It is worth noting that Iran has not attacked a single country in recent history though it has been the target of attacks and political assassinations by foreign powers. At the same time, Iran has been a staunch supporter of both the Palestinian resistance and the Lebanese resistance against Israeli oppression violence.
Still, with large corporations like the French oil and gas giant Total and Danish shipping giant Maersk announcing they will back out of deals they had made with Iran there is definitely cause for concern. It is still unclear what French automakers like Peugeot will do since they’re part of large conglomerates and use parts made in the US. Furthermore, even though European countries declared that they remain committed to the Iran deal, it is unclear whether or not they will bow to American pressure because of fear of American retaliation. Another concern for the European corporations is the fact that so much of international banking is controlled by the US and transfer of funds will be all but impossible if they continue to do business with Iran. So will the Europeans show back bone and stand with Iran or will they cower, that remains to be seen.
Two particularly interesting experiences I had took place while visited Yazd in central Iran. The first was speaking in front of cadets of the notable Revolutionary Guards. Some two hundred young cadets along with their officers sat on the floor of the mosque on base and listened intently. Their young, bright faces so attentive one could hear a pin drop. I told them that even though I was introduced as an American, I was not actually American – though I reside in the US I was Israeli and the son of an Israeli army general. I told them of my niece who was killed when three young Palestinians blew themselves up during a suicide mission. I also told them that I reject Israel as a political entity and look forward to the day when Palestine is free and democratic. I ended my talk by saying that “When Palestine is freed from the racist, apartheid regime under which it is currently suffering, you must come to Al-Quds to pray in Al-Aqsa mosque and then visit me in Jerusalem.” There was no fear or sense of insecurity in their faces but rather a confident calmness. Their attention, their questions later and their warm applause were reassuring. I also told them what I believe to be true, and that is that neither Israel nor the United States will dare to actually attack Iran.
The other remarkable experience I had took place later the same day at a local high school. What does one say to a room full of young Iranian high school boys? What do they know of Palestine? I looked at the three hundred or so boys who sat on the floor waiting to hear me speak and decided to ask them what they knew about Falasteen. After a short pause, one young boy raised his hand. “Falasteen,” he began, “was a place of peace and tranquility. It was a land where Muslims, Jews and Christians all lived and worshiped in peace, until it was invaded and occupied.” I could not have wished for a better answer. I am one of the occupiers, I admitted. My family had participated in the invasion, occupation and oppression that we see today in Palestine.
“Our Supreme Leader” one student asked, “says that in twenty-five years there will be no Israel.” What did I say to that? Well, we know that by “no Israel” he means that Palestine will be free and the Zionist regime will be gone. That he wishes for a day when Muslims, Jews and Christians will be once again able to live and worship in peace. I would ask, I told them, that they do me a favor and help me and millions of Palestinians and millions of supporters of Palestine, and prove the Supreme Leader wrong by making this happen sooner than twenty-five years.
Throughout the visit, both during lectures and other occasions I had received a few questions and comments that were critical of the Iranian official line towards Israel. I was asked if I felt that Iran’s policy towards Israel was harming Iran and if I thought it was the right policy. “Is it true,” I was asked, “that the Jews bought land in Palestine and that it was taken from them by the Palestinians.”
I returned to the US with some trepidation. I landed at Dulles International Airport and was quite ready to call an attorney in case I was stopped. However, all was well, and I exited the airport as though I had landed from any other destination. Looking from the outside, particularly from Iran, one has the advantage of distance and some perspective, and still with his declaration on Jerusalem and his decision on Iran Donald Trump seems like a petulant adolescent with far too much power.
‘Strongest sanctions in history’: Pompeo issues 12 demands to Iran, vows ‘unprecedented pressure’
RT | May 21, 2018
Tehran will struggle to “keep its economy alive” if it does not comply with a list of 12 US demands, including Iranian withdrawal from Syria, Secretary of State Mike Pompeo vowed on Monday.
Speaking at the Heritage Foundation, a right-wing Washington think tank, Pompeo laid out a list of 12 “basic requirements” for Iran. The demands call on Iran to withdraw from Syria, “release all US citizens,” end support for Houthi rebels in Yemen, stop “enrichment” of uranium, and promise never to process plutonium. Iran must also allow “unqualified access to all nuclear sites throughout the country,” Pompeo said.
He promised that the US would impose the “strongest sanctions in history” if Iran failed to comply with these demands.
Pompeo said that “the sting of sanctions will be painful” and Iran will struggle to “keep its economy alive” if Tehran “does not change its course from the unacceptable and unproductive path it has chosen.”
“Thanks to our colleagues at the Department of Treasury, sanctions are going back in full effect and new ones are coming … These will indeed end up being the strongest sanctions in history,” Pompeo said.
The secretary of state also pledged that the US “will track down Iranian operatives and their Hezbollah proxies operating around the world, and we will crush them. Iran will never again have carte blanche to dominate the Middle East.”
Speaking directly to the Iranian people, Pompeo claimed that “President [Hassan] Rouhani and Foreign Minister [Javad] Zarif… are your elected leaders. Are they not the most responsible for your economic struggles?” He added: “The United States believes you deserve better.”
Pompeo also said he’s sure that over time, Washington’s allies will warm to the Trump administration’s now unpopular stance on Iran.
Washington’s strategy is to weaken Iran economically, rather than engage in an actual war, Dr. Said Sadik, Professor of political sociology at the American university of Cairo, told RT in response to Pompeo’s address. “What the [US] is doing now is increase sanctions trying to undermine the power of Iran regionally, economically with the hope that that would lead to unrest and disturbances in Iran, that it would make the Iranian government stop trying to help its allies or extend its influence in the area. This is basically what they want.”
Sadik added: “I don’t think they want a war because war is very expensive and dangerous in this strategic area…What they want is to weaken Iran financially, economically, with the hope that the Iranian government will not be that powerful in the area as it is now.”
The speech comes after Trump announced earlier this month that he was pulling out of the 2015 nuclear deal. Europeans allies had pleaded with Trump not to withdraw from the historic accord, which put tight restrictions on Iran’s nuclear program in exchange for sanctions relief. Iranian president Hassan Rouhani described the US pull-out from the deal as a “historic experience for Iran,” adding that “by exiting the deal, America has officially undermined its commitment to an international treaty.”
Iran says it expects the EU to continue to honor the agreement, despite Washington’s withdrawal from the accord. Inspections by the International Atomic Energy Agency (IAEA) have repeatedly confirmed that Iran is in full compliance with its obligations under the deal.
EU Blocking Statute Against Anti-Iran US Sanctions May Fail to Protect Companies
Sputnik – May 19, 2018
BRUSSELS – The reinforcement and modification by EU of its Blocking Statute, which protects EU companies from the effects of sanctions by a third country, in order to prohibit companies from complying with US anti-Iran sanctions will not protect companies from fines for cooperating with Iranian projects, experts told Sputnik.
Since US President Donald Trump announced his decision to pull out of the Iran nuclear deal and reimpose its sanctions against the Islamic Republic, efforts by EU leaders have been focused on preserving the status quo in relations with Iran and mitigating the effects of the US withdrawal.
On Thursday, European Commission President Jean-Claude Juncker announced that the union will amend its Blocking Statute in order to include the US sanction imposed against Iran in the regulation. As soon as the amendments are adopted, EU businesses will be allowed not to comply with the US restrictions or even demand compensation for losses caused by the US sanctions.
TO AVOID US PENALTIES FIRMS SHOULD ABANDON BUSINESS WITH US
“Reactivating and even modifying the 1996 Blocking Statute will not shield EU companies, banks, and even countries from the US Department of Treasury imposing penalties. An EU company, bank, or government would have to do no business directly or indirectly with US counterparts in order to not feel the impact of US responses,” Dr. Jamsheed K. Choksy, the chair of Department of Central Eurasian Studies at Indiana University, said.
Choksy indicated that the safeguards that the EU leadership and national governments might potentially provide to the EU companies will not be able to make up for the losses caused by not doing business with the United States, which is a target market for EU firms.
Choksy explained that EU firms, in fact, had to choose between business with US entities or Iranian ones and business with US companies was far more economically viable and lucrative than business with Iran.
The head of the Europe of Nations and Freedom group in the European Parliament, Nicolas Bay, agreed with Choksy, saying that the importance of the US and Iranian markets for EU businesses was non-comparable.
POLITICAL ASPIRATIONS VS. ECONOMIC INTERESTS
According to the politician, Brussels’ attempts to demonstrate its political independence and significance by preserving the Iran nuclear deal without the United States have nothing to do with purely economic motives of the EU businesses.
“In the current state of the crisis, Jean-Claude Juncker, Donald Tusk and the European Union are only into communication to hide their weakness, because Brussels will not be able to force the banks, the car manufacturers, and all the European companies that depend on the American market to continue to trade with Iran,” Bay said.
Drieu Godefridi, a writer and former Director of the Hayek Institute, said that EU firms would not abandon pragmatic interests to appease EU politicians trying to recover from Trump’s neglect of transatlantic partnership.
“Whatever Mr. Juncker says now and the sabre-rattling by some, large and small European companies will never jeopardize their North American business to please the Brussels politicians. Europe is divided; we may be the largest world market but Europe is a political dwarf,” Godefridi said.
EUROPE WILL HAVE TO ABIDE
“My analysis when Trump announced the re-establishment of sanctions was that Europeans would have to abide. There is no way Europe could take a different path: America is the backbone of European defense in NATO, America is the first market of Germany and the third of France. No European bank can live without access to the dollar zone,” Godefridi predicted.
Jacques Leroy, a French international consultant on deals in the Middle East, believes that in the current situation, taking into account the importance of the US market for European countries, national governments will try to obtain some exemptions for their firms on an individual basis.
“Every European leader will try to obtain ‘special treatment’ from Washington, which is exactly what Donald Trump counts on. Divide to control. Europe will have to bow to US sanctions in the end,” Leroy stressed.
IRAN’S SALVATION LIES IN PARTNERSHIP WITH RUSSIA, CHINA
Since the majority of experts were convinced that the EU dependence on the United States would not allow Brussels to preserve its cooperation with Iran, they suggested that the Islamic Republic should seek refuge in partnership with more independent Russia ad China.
“I do not think [EU politicians] have the stomach to stand up to Trump. The United States wants Iran, Russia, and China to fall on their knees. These three countries must move closer to each other,” Mohammad Marandi, a professor at the University of Tehran, recommended.
His views were fully shared by Godefridi, who assumed that Russia and China were independent enough from the US economy to go their own way and trade with Iran.
EU will use ‘blocking statute’ to protect its firms from US sanctions for operating in Iran
RT | May 17, 2018
The European Union will activate legislation banning the bloc’s companies from complying with US sanctions against Iran as soon as Friday, according to European Commission President Jean-Claude Juncker.
The law also does not recognize any court rulings enforcing penalties, which could be potentially introduced by the White House against European corporations doing business in the Islamic Republic.
“As the European Commission we have the duty to protect European companies,” the Commission president said at a news conference after a meeting of EU leaders. “We now need to act and this is why we are launching the process of to activate the ‘blocking statute’ from 1996. We will do that tomorrow morning at 10:30.”
“We also decided to allow the European Investment Bank to facilitate European companies’ investment in Iran. The Commission itself will maintain its cooperation with Iran,” Juncker said.
The move followed Washington’s decision to withdraw from the Iran nuclear deal, clinched three years ago between Tehran and the P5+1 powers (China, France, Russia, UK, US, plus Germany) and to reintroduce sanctions that were lifted after signing the pact.
The US Treasury Department said it would give European businesses six months to wind up their investments in the country or risk US sanctions – forbidding them from signing new contracts.
Following a decades-long financial and economic blockade, the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), opened Iran as one of the biggest global markets to dozens of multinationals across the globe. The EU’s biggest companies rushed to sign multi-billion euro deals with Tehran shortly after the sanctions were lifted. As for Iran, the energy-rich republic got an opportunity to ramp up its presence in the global oil markets.
The EU has a lot of experience protecting its interests, Dawood Nazirizadeh, chairman of the Wiesbaden Academy for integration, told RT.
“In 1996 it defended itself against US secondary sanctions with the ‘blocking statute’. As a result, the US granted exemptions to European companies. However, under the current US administration, we are not optimistic about the future for such an agreement,” said Nazirizadeh.
The EU also agreed to stick to the Iran nuclear deal, aiming to protect the interests of European corporations dealing with Tehran against US sanctions, according to European Council President Donald Tusk.
“On Iran nuclear deal, we agreed unanimously that the EU will stay in the agreement as long as Iran remains fully committed to it. Additionally the Commission was given a green light to be ready to act whenever European interests are affected,” the top EU official said.
Iran Signs Free Trade Agreement With Eurasian Economic Union
By Adam Garrie | EurasiaFuture | May 17, 2018
Iran has just signed an agreement to enter a three year provisional free trade agreement with the Eurasian Economic Union (EAEU). According to EAEU official Tigran Sargsyan,
“The temporary agreement stipulates an effective dispute settlement mechanism, including arbitration… It also creates a joint committee of high-ranking officials and establishes a business dialogue”.
The EAEU’s current members are Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan, while the bloc has existing free trade agreements with Vietnam, Uzbekistan and Moldova. Aside from Vietnam other ASEAN states including Indonesia and Thailand have been in early level discussions about the possibility of a free trade arrangement with the EAEU, while Serbia and Turkey have also considered joining. Russian Energy Minister Aleksandr Novak has said that Iran could become the sixth full member in the future. Today’s Iran-EAEU free trade agreement will function as a test to determine the viability of long term Iranian membership of the trading bloc. Novak stated,
“The move to enter into a temporary agreement making for a free trade zone to be set up between Iran and the Eurasian Economic Union, which is currently at an advanced stage, will obviously trigger further development of our bilateral trade and expansion of investment cooperation”.
While many will see EAEU membership as a further means for Iran to create new economic partnerships away from regions whose financial and commercial structures are subservient to a hostile United States, in the long term, it means far more to Iran than a means of skirting increasingly ridiculous sanctions from Washington in the light of the US withdrawal from the JCPOA.
For Iran, EAEU membership represents a new opportunity to expand its economic horizons beyond its current Middle Eastern partners. In this sense, just as Iran has a long history of ‘thinking east’ in terms of economic connectivity and cultural exchange, today’s EAEU presents Tehran with a modern cooperative model to expand its peaceful economic interactions to greater Eurasia. Beyond this, with proposals to integrate Pakistan into the North-South Economic Corridor, Pakistan and Iran could cooperate in order to form two unique and mutually complimentary road corridors.
The North-South Transport Corridor is a joint initiative of nations who have built and continue to expand shipping and road links between South Asia, Northern Eurasia and Europe. The map below shows the basic route which begins with a shipping lane between India and Iran’s Chabahar Port on the Gulf of Oman, before travelling north through Iran to the Caucasus and into Russia, while also linking up with existing rail routes from Iran into Central Asia and west into Europe via Turkey.
While countries as diverse as Russia, Iran and Azerbaijan have embraced the North-South Corridor as a means of creating greater opportunities for economic enrichment through joint cooperative efforts, in India, the project has been sold as a rival to China’a One Belt–One Road. This has been the case even though the North-South Corridor is vastly more limited in its geographical expanse vis-a-vis the global Chinese project and perhaps even more crucially, the other partners in the North-South Transport Corridor do not share India’s zero-sum vision of the project.
In particular, India is keen to present the North-South Transport Corridor as a rival to the China-Pakistan Economic Corridor linking China to the Indian ocean via a large road and rail network whose western terminus is Pakistan’s Gwadar port.
Pakistan’s Ambassador to Azerbaijan recently announced that his country is interested in linking up with existing routes along the North-South Transport Corridor. This gives Pakistan the opportunity to link the China-Pakistan Economic Corridor (CPEC) with the North-South Transport Corridor, which would serve the long term strategic interests of the wider region, in terms of linking Pakistan’s Gwadar Port on the Arabian Sea with Iran’s Chabahar Port on the Gulf of Oman.
Under such a scenario, goods from China would enter Pakistan via newly built road and rail routes and could then travel in one of two directions. First of all, goods could travel south through Pakistan to Gwadar where from there they could go in multiple directions including into Africa, Europe via the Suez Canal, or the wider Middle East via the Gulf of Oman/Chabahar and the Persian Gulf. Alternatively, goods could travel north into Central Asia and ultimately into Russia via Pakistan. This second option was proposed by geopolitical expert Andrew Korybko in early 2017 when he wrote,
“The enhanced trade relations that were mentioned above [see full piece] can only occur if Russia and Pakistan are connected to one another through CPEC, no matter how indirectly due to the geographic distance between them and Moscow’s reluctance to officially endorse this trade route in order to preserve its strategic “balancing act” with India. The second part of this conditional implies that the private sector needs to drive these two countries’ CPEC connectivity since the Russian state isn’t going to do so because of delicate political reasons, which thus allows one to envision three possible solutions, all of which are inclusive of one another and could in theory exist concurrently.
The most probable of the three is that Russia could connect to CPEC via the Central Asian state of Kazakhstan, which is already a member of the Moscow-led Eurasian Economic Union and through which a lot of bilateral trade already traverses. Furthermore, the Eurasian Land Bridge between East Asia and Western Europe is expected to pass through this international corridor as well, so it’ll probably be easiest for Russia and Pakistan to trade across this route by linking up at CPEC’s Urumqi hub in China’s Autonomous Region of Xinjiang.
Considering that Xinjiang’s capital city is located closer to Russia’s southern Siberian border than to CPEC’s terminal Arabian Sea port of Gwadar, there’s also the chance that a more direct north-south trade route could be established between Russia and Pakistan via this avenue. After all, Russia’s “Pivot to Asia” (which is officially referred to as “rebalancing” in Moscow’s political parlance) isn’t just international but also internal, and it aspires to develop resource-rich Siberia just as much as it aims to chart new international partnerships. With this in mind, there’s no reason why southern Siberia couldn’t one day be connected to CPEC via the nearby Urumqi juncture.
Lastly, Russia’s already building a North-South Transport Corridor (NSTC) through Azerbaijan and Iran in order to facilitate trade with India, so the opportunity exists for it to simply use this route’s overland transport infrastructure to reach Pakistan in the event that the Iranian terminal port of Chabahar is ultimately linked with nearby Gwadar. Even if that doesn’t happen, then there’s still nothing preventing private Russian businessman from using Chabahar or even the more developed port of Bandar Abbas as their base of operations for conducting maritime trade with Gwadar or Karachi. This would in effect make India’s “brainchild” the ironic basis for Russian-Pakistani economic relations”.
Both Pakistan’s willingness to embrace the North-South Corridor, thereby integrating it into CPEC which itself forms a crucial artery of One Belt–One Road and Iran’s eagerness to become a member of the EAEU, could help to speed up the process of wider inter-connectivity between China’s Pacific Coast, the Middle East and Russia’s wider economic sphere in northern Eurasia.
If all of these existing links became inter-connected, one would see Gwadar taking on the adding function of becoming Central Asia and Russia’s gateway to the wider shipping routes of the Indian Ocean, while Chabahar would act as a parallel route for goods from both CPEC and the wider Indian Ocean, into the Caucasus, Russia or the Middle East.
Iran’s membership in the EAEU would help to expedite this process as the routes from Iran into Armenia and finally, into Russia would all constitute a single market. Were Turkey to join the EAEU, this would make transcaucasian trade into Turkey and the wider Mediterranean region all the more simple, as it would also allow Iran to act as a conduit between the Caucasus and Turkey, thus avoiding the politically prickly issue of direct trade from Armenia into Turkey. Turkey and Armenia’s mutually healthy relations with Iran, means that Tehran could be a physical arbiter of trade between two nations with historically (and currently) poor relations.
Over all, a strong and southward looking EAEU will help to strengthen both Iran-Pakistan relations through enhanced South Asian-Northern Eurasian trading networks, while also helping to facilitate the smooth transport of goods along One Belt–One Road from the Pacific into the Middle East, western Eurasia and further south into Africa along Indian Ocean maritime belts.
Europe drags feet on guaranteeing trade with Iran
Press TV – May 16, 2018
The European Union’s top policy chief has said that she cannot talk about giving Iran guarantees for the economic benefits of the 2015 agreement, but that she can give assurances that the EU will deepen the dialog with Iran and will immediately start work to arrive at practical solutions. Still a number of European firms have already started winding down business in Iran in an attempt to protect themselves from secondary US sanctions.
Iran’s Foreign Minister Mohammad Javad Zarif warned ahead of a meeting with his British, French and German counterparts in Brussels on Tuesday that there was not much time for them to deliver those assurances.
“Guarantees of benefits of the JCPOA should be given to Iran. We will have to see whether those remaining in the JCPOA can deliver those benefits to Iran,” he was quoted as saying upon arrival in the Belgian capital.
However, the Europeans only pledged to keep the Joint Comprehensive Plan of Action (JCPOA) alive without the United States by trying to keep Iran’s oil and investment flowing.
“We all agreed that we have a relative in intensive care and we all want to get him or her out of intensive care as quickly as possible,” EU foreign policy chief Federica Mogherini told reporters after the 90-minute meeting.
Mogherini emphasized that the lifting of nuclear-related sanctions and the normalization of trade and economic relations with Iran constitute an essential part of the nuclear deal.
She said Iran and the Europeans will be working over the coming weeks to find practical solutions which will include continuing to sell Iran’s oil and gas products, maintaining effective banking transactions and protecting European investments in Iran.
As for the assurances, Mogherini said, “I cannot talk about legal or economic guarantees but I can talk about serious, determined, immediate work from the European side.”
The US has given companies a 180-day wind-down period before the sanctions are reimposed on Iran. That has prompted some European companies to start planning their exit from Iran’s market in the absence of guarantees from their governments.
Danish shipping companies Maersk Tankers and Torm were reported on Tuesday to have stopped taking new orders in Iran.
Even before Trump’s withdrawal, Iran had repeatedly complained to the Europeans about their failure to persuade companies into dealing with Tehran because banks in Europe are generally unwilling to handle transactions with the Islamic Republic.
On Tuesday, German insurer Allianz said it was preparing to wind down Iran-related business due to possible US sanctions.
“We are analyzing our portfolio to identify Iran-related business,” Reuters quoted an Allianz spokesman as saying.
“This analysis is ongoing and we are developing wind-down plans for relevant business to ensure appropriate termination within the defined periods,” he said.

