Dateline New Delhi, Saturday, Feb 4, 2006


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India votes against Iran

     Vienna/New Delhi: India today voted in favour of the International Atomic Energy Agency's (IAEA) resolution to report Iran to the UN Security Council over its controversial nuclear programme. At a 27-3 vote, India today joined the chorus in expressing concern over Tehran's nuclear programme, which they said may not be "exclusively for peaceful purposes". A EU resolution backed by the U.S. called for referring Iran to the UNSC with 27 countries voting in favour of the motion. Only three countries -- Cuba, Syria and Venezuela -- voted against the motion. Five countries -- Algeria, Belarus, Indonesia, Libya and South Africa -- abstained from the voting process. Today's voting at the 35-member IAEA board is being seen as crucial, as it sets in motion the stage for any future action by the UNSC, which might culminate in economic and political sanctions on Iran. IAEA Director General Mohamed El Baradei will be filing a detailed report and assessment of the Iranian nuclear program for the next meeting of the IAEA Board on March 6.

    India's voting is significant as its steps at the IAEA board meeting was mired in controversies arising out of statements made by U.S. Ambassador to India, David C. Mulford, that voting against the resolution would endanger the Indo-US nuclear deal for civilian use. He had reportedly said that if India did not vote against Iran at the IAEA Board of Governors meeting in Vienna, the fallout on the July 18, 2005 deal would be "devastating" and the initiative would "die". Later he issued a statement saying he had been quoted out of context. India had taken a strong objection to Mulford's statement. The Ministry of External Affairs had said that the vote at the IAEA would be its own decision and not be affected by the future of its civilian nuclear deal with the US. The Left and Opposition parties had also raised objection at Mulford's statement. The Left parties raised their ante against any move by New Delhi supporting the EU3 resolution as it did last September, and urged the Centre not to vote against Iran at the upcoming meeting of the UN nuclear watchdog. The BJP had said that the Centre should not let it to be arm-twisted by the US.

    As a follow-up to its earlier stance on the issue, the MEA spokesperson said that Saturday's resolution at the IAEA board meeting was a well-balanced one. "Several amendments suggested by Non-aligned countries were accepted by the EU co-sponsors. While there will be a report to the Security Council, the Iran nuclear issue remains within the purview of the IAEA," he said in a statement. "It has been our consistent position that confrontation should be avoided and any outstanding issue ought to be resolved through dialogue. The Resolution has won a period of six weeks, before the march IAEA Board Meeting, for diplomatic efforts to continue and to get negotiations between the EU-3 and Iran back on track. It also provides an opportunity for serious consideration of the Russian proposal for a joint venture with Iran for uranium enrichment," he added. He further said that Indias vote in favour of the resolution should not be interpreted in any way as detracting from the friendly and close relation India enjoyed with Iran. "Our vote in favour of the Resolution should not be interpreted as in any way detracting from the traditionally close and friendly relations we enjoy with Iran. It is our conviction that our active role, along with other friendly countries, enabled the tabling of a resolution that recognizes the right of Iran to peaceful uses of nuclear energy for its development, consistent with its international commitments and obligations, while keeping the door open for further dialogue aimed at resolving the outstanding issues within the purview of the IAEA," he said. "We call upon Iran to respond positively to the requests from the IAEA Board to restore the confidence building measures it had voluntarily adopted in the Paris agreement, and continue to cooperate with the IAEA in resolving any outstanding issues related to its nuclear programme," he further said. Prime Minister Manmohan Singh had amidst all these controversies on Tuesday said that he was committed to promoting Indias enlightened national interest. He said he still believed the Iran nuclear issue was "a matter that should be resolved through diplomacy and dialogue. As a signatory to the nuclear non- proliferation treaty, Iran was entitled to all the rights that went with its membership and also had a responsibility to fulfil its obligations".

Vote against Iran pushes up oil prices

     Vienna/Singapore: The impact of IAEA resolution against Iran is being felt on oil prices. The prices rose sharply above 68 USD a barrel in Asian trading hours on the eve of a crucial OPEC meeting which calls for a cut in production. The prices had surged 1.50 USD in New York main contracts on supply concerns related to the growing unrest in Nigeria, Africa's biggest oil producer, and the potential fallout from Iran's decision to resume sensitive nuclear research. Earlier, Libyan oil minister Fathi Hamed Ben Shatwan had said that "if Iran is referred to the U.N. Security Council over its nuclear ambitions, it would likely cause oil prices to rise." However, key members of OPEC such as Saudi Arabia and Kuwait have rejected Iran's call. But the vote against Iran today has sparked of the debate sending global markets to jitter, ahead of the oil cartel's meeting in Vienna tomorrow. Analysts are predicting that the prices will soar up to 70 USD a barrel again and are forecasting a pessimistic projection of 90 to 97 USD a barrel by the third or fourth quarter this year. Iran, the fourth largest oil exporter in the world has called for trimming its output by one million barrels per day (bpd).

Iran may lay gas pipeline to Pakistan minus India

    Tehran: The ripples of India's vote against Iran in the International Atomic Energy Agency (IAEA) may soon be felt in New Delhi, as Tehran today categorically promised Pakistan the gas pipeline even if India does not meet a May deadline to join the project. Speaking to the newspersons here the deputy Iranian Oil minister Mohammad Nejad-Hosseinian said, "Following our prior agreement with Pakistani officials, if for any reason we do not reach an accord with the Indian side over the gas deal, Iran and Pakistan will independently develop the pipeline project." The Minister also hinted about Indias perceptible change in the policy towards Iran and diminishing interest in the gas pipeline project by commenting on the recent replacement of Mani Shankar Aiyar with Murli Deora in the crucial Oil ministry. Just a week ago, Prime Minister Dr. Manmohan Singh had brought Deora to the Oil ministry by taking away the significant Petroleum and Natural Gas portfolio from Mani Shankar Aiyar who was very keen in materialising this gas pipeline project. The Iranian officials also highlighted the fact that "If the Peace Pipeline does not reach India, then it will have to import about 600,000 barrels per day more crude oil to compensate for the loss," and added that alternatives for the gas project "would be rare, costly, unsafe and transitory." Nejad-Hosseinian was also quoted by an Iranian news agency saying, "It is in Indias best interests to participate in the project. It does not seem logical that the country act against its national interests." The gas pipeline termed as the "Peace Pipeline" has been a constant topic of debate with critics questioning its viability and stability vis-`-vis energy security of India. The USD 7 billion project linking Iran's abundant gas reserves to India had also been opposed by U.S. as Condoleezza Rice, US Secretary of State in her last visit to India had asked the Indian Government not to go ahead with pipeline project and promised to assist India to meet its energy requirement through the July 18 Indo-US Civilian Energy Nuclear deal.

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