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Iran softens stand on bilateral trade with India; says deputy ambassador was 'misquoted'

Clarification comes a day after envoy claimed India would lose privileges

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File photo of Iranian President Hassan Rouhani (first right) after inaugurating the first phase of Chabahar Port in Iran; (inset) Massoud Rezvanian Rahaghi
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A day after Iran's deputy envoy threatened that all privileges extended to India in bilateral trade will end if it cuts oil imports in the wake of US sanctions, the Iranian Embassy here on Wednesday issued a clarification, saying that Tehran was aware about India's difficulties in dealing with the unstable energy market. In a softened tone, the Embassy also assured that Iran will do its best to ensure security of oil supply to India by offering various flexible measures that facilitate bilateral trade.

The tone of Iran's deputy ambassador to India, Massoud Rezvanian Rahaghi, while speaking at a seminar on Tuesday had raised hackles in the Indian diplomatic community. Terming his comments as a "loose remarks", former Indian Ambassador to various Gulf nations, Talmiz Ahmad said diplomatic effort is usually done discreetly and with moderation. "I would rather not take it seriously. This is not a decision which a diplomat can take. These are very high level decisions," he added.

Rahaghi had pointed out that certain privileges extended to India by Iran between 2012 and 2015 had helped New Delhi to minimise its current account deficit (CAD) considerably because of rupee-denominated oil imports from Iran had helped curtailing of foreign exchange outflow. The deputy ambassador had also expressed disappointment at India not delivering on its promised investment for the expansion of the Chabahar Port and other connectivity projects that run through Iran.

While the US wants all countries, India included, to reduce oil imports from Iran to zero, Ambassador Nikki Haley had said that her country was open to working with New Delhi on Chabahar in view of its strategic importance, particularly with regard to Afghanistan.

The clarification further said Iran has always welcomed Indian initiatives on Chabahar Port and construction and expansion of the roads and railway network. "Coercive literature has never had a place in the history of Iran and India relations and their dialogues. Iran has always been a reliable energy partner for India and others, seeking a balanced oil market and rational prices of oil which ensures the interests of both countries as consumer and supplier," said the clarification.

Sources here said that based on various interactions with the US officials, it is expected that Chabahar will be excluded from sanctions regime, as it is pivotal to US interests as well. "So, if there is any slowness or delay with regard to investment, it may be purely of bureaucratic character rather than a principled foreign policy position. I am confident about Chabahar going forward because it's in our crucial national interest," Talmeez Ahmed said.

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