Iranian deal offers no relief to India on oil imports

November 24, 2013

Nuclear_dealWashington, Nov 24: Countries like India would have to continue reducing oil imports from Iran despite a deal with the world powers over its controversial nuclear programme, according to a US fact sheet which also said Tehran would get a relief of USD 7 billion under the agreement.

Under the agreement reached in Geneva, Iran has committed to halt enrichment above five per cent, neutralise its stockpile of near-20 per cent uranium and halt progress on its enrichment capacity, to halt progress on the growth of its 3.5 per cent stockpile and committed to no further advances of its activities at Arak and to halt progress on its plutonium track.

In response, the US and five other major world powers have agreed to provide limited, temporary, targeted, and reversible relief while maintaining the vast bulk of the sanctions, including the oil, finance, and banking sanctions architecture. "If Iran fails to meet its commitments, we will revoke the relief," the US fact sheet said.

"Sanctions affecting crude oil sales will continue to impose pressure on Iran's government. Working with our international partners, we have cut Iran's oil sales from 2.5 million barrels per day (bpd) in early 2012 to 1 million bpd today, denying Iran the ability to sell almost 1.5 million bpd," the fact sheet said.

"That's a loss of more than USD 80 billion since the beginning of 2012 that Iran will never be able to recoup. Under this first step, the EU crude oil ban will remain in effect and Iran will be held to approximately 1 million bpd in sales, resulting in continuing lost sales worth an additional USD 4 billion per month, every month, going forward," it said.

India has slashed import of crude oil from Iran by over 26.5 per cent in the financial year ended March 31 as US and European sanctions made it difficult to ship oil from the Persian Gulf nation.

India imported about 13.3 million tonnes of crude oil from Iran in 2012-13 fiscal, down from 18.1 million tonnes shipped in the previous financial year.

Oil sanctions alone will result in approximately USD 30 billion in lost revenues to Iran – or roughly USD 5 billion per month – compared to what Iran earned in a six month period in 2011, before these sanctions took effect.

Iran used to be India's second-largest supplier, but is now fifth or sixth. The US said the approximately USD 7 billion in relief is a fraction of the costs that Iran will continue to incur during this first phase under the sanctions that will remain in place.

The vast majority of Iran's approximately USD 100 billion in foreign exchange holdings are inaccessible or restricted by sanctions.

In the next six months, Iran's crude oil sales cannot increase.

While Iran will be allowed access to USD 4.2 billion of its oil sales, nearly USD 15 billion of its revenues during this period will go into restricted overseas accounts.

"In summary, we expect the balance of Iran's money in restricted accounts overseas will actually increase, not decrease, under the terms of this deal," the US said.

Further sanctions affecting petroleum product exports to Iran, which result in billions of dollars of lost revenue, will remain in effect.

The vast majority of Iran's approximately USD 100 billion in foreign exchange holdings remain inaccessible or restricted by the sanctions.

The P5+1 countries have committed not impose new nuclear-related sanctions for six months, if Iran abides by its commitments under this deal, to the extent permissible within their political systems; and suspend certain sanctions on gold and precious metals, Iran's auto sector, and Iran's petrochemical exports, potentially providing Iran approximately USD 1.5 billion in revenue.

It also agreed to license safety-related repairs and inspections inside Iran for certain Iranian airlines and allow purchases of Iranian oil to remain at their currently significantly reduced levels – levels that are 60 per cent less than two years ago. USD 4.2 billion from these sales will be allowed to be transferred in installments if, and as, Iran fulfills its commitments.

"The concessions Iran has committed to make as part of this first step will also provide us with increased transparency and intrusive monitoring of its nuclear programme. In the past, the concern has been expressed that Iran will use negotiations to buy time to advance their program," the US said.

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News Network
May 15,2020

May 15: Global deaths linked to the novel coronavirus passed 300,000 on Thursday, while reported cases of the virus are approaching 4.5 million, according to a news agency tally.

About half of the fatalities have been reported by the United States, the United Kingdom and Italy.

The first death linked to the disease was reported on January 10 in Wuhan, China. It took 91 days for the death toll to pass 100,000 and a further 16 days to reach 200,000, according to the Reuters tally of official reports from governments. It took 19 days to go from 200,000 to 300,000 deaths.

By comparison, an estimated 400,000 people die annually from malaria, one of the world’s most deadly infectious diseases.

The United States had reported more than 85,000 deaths from the new coronavirus, while the United Kingdom and Italy have reported over 30,000 fatalities each.

While the current trajectory of COVID-19 falls far short of the 1918 Spanish flu, which infected an estimated 500 million people, killing at least 10% of patients, public health experts worry the available data is underplaying the true impact of the pandemic.

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News Network
January 2,2020

Washington, Jan 2: The number of people killed in large commercial airplane crashes fell by more than 50% in 2019 despite a high-profile Boeing 737 MAX crash in Ethiopia in March, a Dutch consulting firm said on Wednesday. Aviation consulting firm To70 said there were 86 accidents involving large commercial planes - including eight fatal incidents - resulting in 257 fatalities last year. In 2018, there were 160 accidents, including 13 fatal ones, resulting in 534 deaths, the firm said.

To70 said the fatal accident rate for large airplanes in commercial passenger air transport was just 0.18 fatal accident per million flights in 2019, or an average one fatal accident every 5.58 million flights, a significant improvement over 2018. The fatality numbers include passengers, air crew such as flight attendants and any people on the ground killed in a plane accident

Large passenger airplanes in the study are aircraft used by nearly all travelers on airlines worldwide but excludes small commuter airplanes in service, including the Cessna Caravan and some smaller turboprop airplanes, according to To70.

On Dec. 23, Boeing's board said it had fired Chief Executive Dennis Muilenburg after a pair of fatal crashes involving the 737 MAX forced it to announce it was halting output of its best-selling jetliner. The 737 MAX has been grounded since March after an October 2018 crash in Indonesia and the crash of a MAX in Ethiopia in March killed a total of 346 people.

To70 said the aviation industry spent significant effort in 2019 "focusing on so-called 'future threats' such as drones." But the MAX crashes "are a reminder that we need to retain our focus on the basics that make civil aviation so safe: well-designed and well-built aircraft flown by fully informed and well-trained crews."

The Aviation Safety Network said on Wednesday that, despite the MAX crash, 2019 "was one of the safest years ever for commercial aviation." The 157 people killed in March on Ethiopian Airlines Flight 302 accounted for more than half of all deaths last year worldwide in passenger airline crashes.

Over the last two decades, aviation deaths around the world have been falling dramatically even as travel has increased. As recently as 2005, there were 1,015 deaths aboard commercial passenger flights worldwide, the Aviation Safety Network said.

Last week, 12 people were killed when a Fokker 100 operated by Kazakh carrier Bek Air crashed near Almaty after takeoff. In May, a Russian Sukhoi Superjet 100 aircraft caught fire as it made an emergency landing at Moscow’s Sheremetyevo airport, killing 41 people.

The figures do not include accidents involving military flights, training flights, private flights, cargo operations and helicopters.

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News Network
January 3,2020

New Delhi, Jan 3: US aviation regulator Federal Aviation Administration on Thursday warned America's airlines and their pilots that there is risk involved in operating flights in Pakistan airspace due to "extremist or militant activity", according to an official document.

"Exercise caution during flight operations. There is a risk to US civil aviation operating in the territory and airspace of Pakistan due to extremist/militant activity," said the US Federal Aviation Administration (FAA) in a notice to airmen (NOTAM) dated December 30, 2019.

The NOTAM is applicable to all US-based airlines and US-based pilots.

The US regulator said in its NOTAM that there continues to be a risk to US civil aviation sector from attacks against airports and aircraft in Pakistan, particularly for aircraft on the ground and aircraft operating at low altitudes, including during the arrival and departure phases of flights.

"The ongoing presence of extremist/militant elements operating in Pakistan poses a continued risk to US civil aviation from small-arms fire, complex attacks against airports, indirect weapons fire, and anti-aircraft fire, any of which could occur with little or no warning," it said.

The FAA said that while, to date, there have been no reports of man-portable air defense systems or Manpads being used against the civil aviation sector in Pakistan, some extremist or terrorist groups operating there are suspected of having access to these Manpads.

"As a result, there is potential risk for extremists/militants to target civil aviation in Pakistan with Manpads," it said.

The regulator added that pilots or airlines must report safety or security incidents - which may happen in Pakistan - to the FAA.

Pakistan on July 16 last year opened its airspace for India after about five months of restrictions imposed in the wake of a standoff with New Delhi.

Following the Balakot airstrikes by the Indian Air Force, Pakistan had closed its airspace on February 26 last year.

Pakistan in October last year had denied India's request to allow Prime Minister Narendra Modi's VVIP flight to use its airspace for his visit to Saudi Arabia over the Jammu and Kashmir issue.

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