US sanctions against Tehran

Iran Says Talks With US Depend on Khamenei’s Permission, Lifting of Sanctions

Trump said last month that he had aborted a military strike to retaliate for Iran’s downing of an unmanned US drone because it could have killed 150 people, and signalled that he was open to talks with Tehran.

Dubai: Iran’s intelligence minister has said Tehran and Washington could hold talks only if the US ended its sanctions and Iran’s top authority, Ayatollah Ali Khamenei, gave his approval, state news agency IRNA reported on Thursday.

“Holding talks with America can be reviewed by Iran only if (US President Donald) Trump lifts the sanctions and our supreme leader gives permission to hold such talks,” Mahmoud Alavi said late on Wednesday.

“Americans were scared of Iran’s military power, that is the reason behind their decision to abort the decision to attack Iran.”

Trump said last month that he had aborted a military strike to retaliate for Iran’s downing of an unmanned US drone over the Strait of Hormuz on June 20 because it could have killed 150 people, and signalled that he was open to talks with Tehran.

Also read: Iran Says It Has Breached 2015 Nuclear Deal’s Stockpile Limit

Tehran said the surveillance drone had been shot down by an Iranian surface-to-air missile in Iranian airspace, while Washington said it had been in international airspace.

Tension has spiked between Tehran and Washington since last year, when Trump quit the 2015 nuclear deal between Iran and six powers and reimposed sanctions that had been lifted under the pact in return for Tehran curbing its sensitive nuclear work.

In reaction to US sanctions, which have notably targeted its main foreign revenue stream in the shape of crude oil exports, Iran has scaled back its commitment to the deal. It said on Wednesday that it would boost its uranium enrichment after July 7 to whatever levels it needs beyond the cap set in the agreement.

The European Union has urged it to stick to the terms of the deal, but Tehran has said its commitment will gradually decrease until Britain, France and Germany can ensure that it benefits financially from the accord – Iran’s main incentive for signing up to it.

Europe Must Offset US Pullout From Nuclear Deal, Says Iran Foreign Minister

EU officials strongly oppose the May decision by the US to withdraw from the nuclear agreement and have sought to salvage the deal in some form.

Berlin: Europe should take action to neutralise the consequences of the US decision to quit a 2015 Iran nuclear accord to ensure its own long-term economic interests, Iran’s foreign minister said in an interview published on Saturday.

Mohammed Javad Zarif told Germany’s Der Spiegel news magazine that Iran could “reduce its implementation” of the agreement and possibly increase uranium enrichment activities if the nuclear agreement was jeopardised by “the actions of the Americans and the passivity of the Europeans.”

“The Europeans and other signatories must act to offset the consequences of the US sanctions,” Zarif told the magazine, calling a package of measures drafted by Europe an important step that should now be implemented.

“What is paramount: Europe should do so not for Iran, but for its own sovereign and long-term economic interests.”

EU officials strongly oppose the May decision by the US to withdraw from the nuclear agreement and have sought to salvage the deal in some form.

Germany on Friday said it was considering setting up a payment system with its European partners that would allow continued business transactions with Iran once US sanctions kick in.

However, German officials concede privately that such a system would not prevent big companies that rely on US exports to escape US sanctions if they continue to sell to Iran.

Zarif said Tehran’s biggest priority was to continue to sell a reasonable amount oil worldwide and return the proceeds to Iran, as well encouraging investment and cooperation in areas such as technology and research.

“Europe said the nuclear agreement was in its security interest. Then Europe must be ready to pay for its security,” Zarif said. “Nothing is for free.”

He said Europe should be “ready to pay for its security” by implementing a EU “blocking agreement” under which it can punish European firms for withdrawing from Iranian business deals to avoid US sanctions.

“The question is whether European wants its companies to follow European laws or American ones, or whether it will submit to the American dictates,” Zarif said.

He said Iran had options to act if Europe failed to act to compensate Iran for the US sanctions.

“We do not necessarily have to cancel (the agreement). Article 36 of the agreement and Security Resolution 2231 make it possible to reduce implementation, without cancelling it,” he said.

Asked if Iran could resume increased enrichment of uranium, he said, “That would be one of the possibilities.”

Zarif said Tehran would not “waste its time” on additional negotiations with the United States about Iran’s behaviour in the region unless Washington rescinded its decision to withdraw from the nuclear agreement.

“Only when Europe ensures that (the agreement) is implemented can Iran see if the attempt should be made to talk about other issues,” he said.

(Reuters)

India Holds Talks With US Delegation on Iran Oil Imports

No final decision has yet been made on the oil imports with Iran, with India awaiting the results of negotiations between Tehran and European capitals to devise a financial payment mechanism.

New Delhi: As indicated by recent statements from senior US administration, the high-level US delegation that held talks with Indian officials conveyed that waivers could be given if there was significant reduction in oil imports from Iran.

A day after holding talks with Iran’s deputy foreign minister Seyyed Abbas Araghchi, Indian foreign secretary Vijay Gokhale held discussions on Tuesday with a US team led by assistant secretary for terrorist financial Marshall Billingslea on the issue of implementing US sanctions against Tehran announced after Washington withdrew from the Iran nuclear deal.

Washington has been sending teams of US officials to major countries about the new set of sanctions which will indict any entities that do substantial business with Iran. The first set of sanctions will come into effect from August 6, while the last and final deadline is for November 4 for the remainder of the restrictions to be enforced.

Earlier, US administration had been adamant that there would be no exemptions and urged countries like India and China to reduce their oil imports from Iran to zero.

However, late last week, US treasury secretary Steven Mnuchin told journalists that some countries could get waivers. “We want people to reduce oil purchases to zero, but in certain cases if people can’t do that overnight, we’ll consider exemptions,” he said.

Sources indicated that a similar message was also conveyed by the US delegation.

Gokhale reportedly told that India would decide on next steps based on its own national interest. New Delhi is also interested in a ‘carve-out’ which will allow Indian companies to continue to develop the strategically important port of Chabahar.

When US Congress first enacted the law in 2011, India’s import of Iranian oil was around 320,000 barrels per day. The ‘significant reductions’ in oil import which would allow for a presidential waiver was defined as a decrease of 18%. India received the waiver in June 2012.

After the sanctions in 2016, India’s import of Iranian crude oil jumped. Even after a 16% month-to-month decline in June, Iran oil imports are nearly two-thirds more than the 2011 levels.

As per sources, no final decision has yet been made on the oil imports with Iran, with India awaiting the results of the negotiations between Tehran and European capitals to devise a financial payment mechanism.