Impact of removal of sanction removal

Iran had several sanctions imposed on it by USA, UN and other western world. These sanctions have been removed because of P5+1 negotiations and after Iran’s agreement to reduce its nuclear fuel stockpile in phased manner.
What is India’s response to these sanction removals?
  • India is  keen on taking ties with this “extended neighbour” to a higher level.
  • The removal of sanctions on Iran following the nuclear deal has ended its isolation, and enabled its return to the economic and diplomatic mainstream.
  • The visit is expected to bridge the trust deficit in bilateral cooperation and boost energy and trade ties while expediting India’s connectivity plans.
How did these sanctions impacted India-Iran relations?
  • Bilateral ties took a beating during the sanctions years.
  • India had voted against Iran at the International Atomic Energy Agency over its clandestine nuclear programme and, under pressure from the U.S., slashed oil imports from the country by up to 40 per cent during the period.
  • New Delhi had also backed off from a pipeline project that aimed to bring natural gas from Iran to India through Pakistan.
Why Iran is so important to India?
  • Till sanctions were imposed on Iran, it was India’s second largest source of crude oil after Saudi Arabia.
  • Once the Chabahar port in Iran is developed, it will offer India alternative access to landlocked Afghanistan, bypassing Pakistan.
  • Both Iran and India share the goal of a stable government in Kabul free of the Taliban’s influence. Globally, New Delhi and Tehran are on the same page in their opposition towards groups like al-Qaeda and the Islamic State.
  • The Iran visit is an opportunity to restore equilibrium in India’s foreign policy, which, of late, was seen to be skewed towards Israel and Saudi Arabia.
What India is doing?
  • The government appears to be trying to reach out to the three poles of the region.
  • While it will pursue good ties with the Sunni Gulf for energy supplies, Iran would act as a gateway to Central Asia besides enhancing India’s energy security.
  • Israel remains one of India’s top defence and technology suppliers.
  • The success of this policy depends on New Delhi’s capacity to do the balancing act.
Why and what new sanctions are imposed by US?
  • Iran has conducted a ballistic missile test.
  • The United States has imposed new economic sanctions against Iran over its ballistic missile programme and for contributing to regional tensions.
  • According to US, Iran’s continued support to terrorism and development of its ballistic missile programme pose a threat to the region, US and its partners worldwide.
  • Under the sanctions, those involved cannot have access the US financial system or deal with US companies.
  • They are also subject to “secondary sanctions”, which means foreign companies and individuals are prohibited from dealing with them as they also can be blacklisted by US
What is Iran’s response to these new Sanctions?
  • Iran has denounced the new sanctions as illegal and hailed that they are not compatible with US’s commitments and United Nations Security Council (UNSC) resolution that endorsed the nuclear deal (known as the Joint Comprehensive Plan of Action, or JCPOA) reached between Iran and P5+1 countries in 2015

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