Iran strengthening its friendship with China has shocked India with billions of dollars. Iran transferred India through its Farzad B gas project. This gas field was discovered by the Indian company ONGC Videsh Limited in Tehran.
Iran, which befriends China amid US sanctions, gave India a billion dollar setback. Iran led India on the Farzad B gas project. This gas field was discovered by ONGC Videsh Limited of India. Iran has now decided to develop this gas field on its own. Iran had previously rejected India’s $ 2 billion proposal for the Chabahar rail link project. Let’s understand why Iran, suddenly faced with the shortage of money, did this …
Iran just signed a $ 400 billion deal with China for 25 years this year. After the US withdrawal from the nuclear deal in May 2018, Iran faces severe US sanctions and has a serious cash shortage. After Mahadil from China, the money arrives in Iran relentlessly. Not only that, China has dramatically increased oil imports from Iran, unlike India. In addition, Iran receives a lot of money from China. Iran is now developing the Farzad B gas field on its own with the help of Chinese money.
China to buy oil from Iran for the next 25 years at very low prices
Iran and China have set a target of increasing bilateral trade tenfold to $ 600 billion over the next 10 years. The 18-page documents of this Sino-Iranian Mahadil show that China will buy oil from Iran for the next 25 years at a very low price. In return, China will invest in banks, infrastructure such as telecommunications, ports, railways and transportation. It is believed that after this deal, Iran will have access to Baidu called China’s GPS. Not only that, China can help launch 5G service in Iran. China is Iran’s biggest trading partner.
The China-Iran deal also includes military cooperation such as weapons development, joint training and intelligence training to prevent “terrorism, drug and human trafficking, and cross-border crimes.” China is said to be deploying 5,000 of its troops to Iran as well. China plans to expand the Sino-Pakistani economic corridor from Pakistan to Iran.
Indian investment crisis due to China’s presence in Iran
If China maintains its military grip in this region, then there will be a crisis of US military influence in West Asia. China has already built a huge naval base in Djibouti, Africa. India could also be shocked by the deal, analysts said. India has spent billions of rupees on the development of Chabahar, the Iranian port. India’s relations with Iran are at a critical stage due to pressure from the United States. Chabahar is extremely important both strategically and commercially.
It is only 100 km from the port of Gwadar in Pakistan, developed with the help of China. India may also have to choose one of the countries in America, Saudi Arabia, Israel over Iran. There was a time when Iran was India’s main supplier of oil, but under pressure from the United States, New Delhi had to virtually halt its imports of oil from Tehran. China’s presence in Iran has created a crisis for Indian investments.
What is Iran’s intention about India
There was an impasse in the conversation about Farzad-B from the very beginning. The Indian consortium led by ONGC Videsh signed the exploration agreement in 2002 and invested $ 400 million. Iran allowed this deal to expire in 2009, a year after the discovery of gas reserves. It is not yet clear how the Indian consortium will recover its investment. Several deadlines were missed for the agreement. India blamed Iran for repeated changes in the terms of the deal and for delaying it.
Dharmendra Pradhan was furious with Iran
Enraged by the deal’s delay, India has asked its oil companies to cut Iran’s crude oil imports by 20%. In response, Iran reduced the payment window for Indian refiners from 90 days to 60 days and reduced the ocean freight discount from 80% to 60%. After Iran’s deal with Gazprom, Oil Minister Dharmendra Pradhan said on June 20, 2017 that if India doesn’t get the project, it doesn’t matter. He had said, “I want insurance on my investment. Iran is a sovereign country. We have supported Iran in difficult days and we expect the same from Iran. We will only invest when we see returns.