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War Plan Iran: China Snubs Washington's Best-Laid Plans

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BREAKING: War Plan Iran: China Snubs Washington's Best-Laid Plans to Destabilize Iran's Oil Industry
by Finian Cunningham

Global Research, January 10, 2012


Why should China shoot itself in the foot to accommodate hostile American chauvinists?

Chinese leaders dealt a blow to US plans to strangulate Iranian oil exports just hours before Washington's Treasury Secretary Timothy Geithner touched down in Beijing.

It could hardly be a more pointed snub to Washington's designs to press-gang a global lynch mob into laying into the Iranian economy.

Top of the agenda for Geithner's visit beginning Tuesday is to push China's leaders into cutting off crude oil imports from Iran - thus hoping to cripple the Iranian economy.

Already the US government seems to have succeeded in bouncing the European Union and other Asian importers of Iranian oil - Japan and South Korea - into following Washington's latest sanctions against Iran's Central Bank, thereby hitting the state-controlled oil industry.

For the record, the US orchestration of sanctions is based on the tiresome and spurious allegations that "Iran is trying to develop a nuclear weapon" - which in reality reads "Washington needs a pretext to mount regime change in Tehran to one that is subservient to its foreign policy and future energy requirements".

But the Chinese are having none of it. China's astute leaders know full well that the real US agenda has nothing to do with alleged nuclear weapons.

China's senior foreign diplomat Chen Xiaodong told China Daily: "We are against imposing any unilateral economic or oil sanctions on Iran" - precisely what Geithner is demanding his hosts in Beijing to do.

Here's a few factors that may be forming China's view on the matter.

First, Iran's nuclear programme is in compliance with its obligations under the Non-Proliferation Treaty. Iran's development of nuclear capability for the enrichment of uranium is well within technical limits for civilian energy and medical purposes, which Iran has consistently claimed is what its legitimate nuclear programme is all about. China has said that it supports Iran's civilian nuclear endeavours because… well because they are entirely reasonable and legitimate.

Second, China is heavily dependent on Iranian crude oil. Some 22 per cent of its total crude oil imports come from Iran. Do you really think the second largest economy in the world is going to risk its growth plans to accommodate US chauvinism?

Third, the Chinese government probably knows full well that the US-led sanctions against Iran are illegal under international law. Such illegality may fool some of the people some of the time, but not all of the people all of the time. In other words, the Chinese - famed for their long view of history - know that such illegal bullying is not sustainable and will end in futility.

Fourth, venal US foreign policy is coming back to bite itself in its own rear-end. Washington's war-making in Libya, East Africa, the Persian Gulf and Central Asia is driven in large measure to wrest US hegemony from the perceived competitive threat of China. Beijing is believed to have already lost much of its investments in Libya after the US/NATO blitzkrieg on the North African country. Why should China facilitate the US vandal over Iran, especially when China has invested heavily in the Islamic Republic for future oil and gas projects, in particular the development of the South Pars Field - the biggest known reserve of natural gas on the planet.

Fifth, the arrogant delusions of the US knows no bounds. Only two months ago, US President Barack Obama went on a tour of Asia-Pacific rounding on China as the new US military target. And for the past year, China has been berated and vilified by Washington as a "currency manipulator".

Republican presidential hopeful Mitt Romney has even accused China of "stealing from us" - referring to the relative trade balances. It is a bit rich, to say the least, that the bankrupt and terminally indebted US should lash out at China when the latter is propping up the US economy by buying its worthless Treasury bonds.

Latest figures show that the total accumulated American debt is at $16 trillion; while its trade deficit is at $1.4 trillion. China's trade surplus is $0.16 trillion, that is, about 10 per cent of the US deficit. In other words, the roots of the US economic collapse are to do with its chronic relation to the entire world, not specifically China. Yet Chinese leaders have had to endure endless, arrogant and preposterous scape-goating from US bigots. "Ah so, and now you want us to shoot ourselves economically and strategically in the foot with regard to our ally Iran?"


The US may have the most fearsome military machine on the planet. But to be honest that's about it. In every other way, it is a former heavyweight who is pathetically getting pie-eyed at the Last Chance Saloon. And China knows it. How? Because it's picking up the American tab… for now.


Well looks like America is getting snubbed left right and centre. Bravo to China the defender of the free world:china::china::china:
 
Thank you China indirectly for helping India also :azn: but the US have one trump card that is selling weapons to Taiwan and so far they have shown restraint in doing so but what if things change with Iran will the Americans play hardball?
 
India ignores US call for economic freeze, opens up Iran oil strategy

Jyoti Malhotra / New Delhi January 11, 2012, 0:08 IST

India has decided to ignore the US call to freeze its economic relationship with Iran, citing strategic national interest, even as the government is working towards a multi-layered strategy that involves reducing its exposure to Iranian crude, looking at intermediaries with third-country banks, as in Russia, and putting into place a rupee-rial barter trade mechanism allowing India to directly trade with Teheran.

As the Turkish bank, Turkiye Halk Bankasi, told Indian oil refiners on Tuesday it would no longer be able to act as an intermediary for their purchases of Iranian crude, India was already putting in place a containment strategy that would not offend the Americans but simultaneously assuage the Iranians about their continuing importance in India's view of the world.



The crisis is not upon India immediately, as the US sanctions give a six-month breathing space for countries to act. Second, the US anti-Iran legislation is framed so as to allow a US presidential waiver to countries if they show they have succeeded in reducing their exposure to trading with Iran. In fact, private oil companies like Reliance and Essar have already done so, leaving PSUs like Mangalore Refinery & Petrochemicals Ltd (MRPL), HPCL and Indian Oil now scrambling for cover.

With a multi-ministerial delegation headed for Iran on January 16, a rupee-rial counter-trade mechanism is expected to form the backbone of India's medium-to-long-term oil strategy with Iran.

Despite a burgeoning romance with Saudi Arabia, in which the Saudis offered Prime Minister Manmohan Singh during his 2010 visit larger amounts of crude, Indian refineries have continued to source a significant 12 per cent of their oil requirements from Iran, amounting to $1 billion annually.

Saudi Arabia remains India’s largest source of crude, totalling 30 per cent of requirements. But as the US attempts to force Iran to downsize its nuclear programme, it has opened the gates for a new great game in energy security. China, Korea and Japan have already announced that they will soon initiate their own counter-strategies by trading in their respective currencies, the yuan, the won and the yen.

The problem with India's barter system is that the Iranians may not want to buy too much from India, perhaps some tea, gems and jewellery.

If companies like L&T hope to sell construction equipment, oil rigs, etc, thereby helping use up the bank of rupees that Iran accumulates for the oil it sells to India, it will run the risk of not being able to do business with the US and Europe.

That is why a combination of strategies is being contemplated: MRPL, which has the largest exposure to Iran (about 142,000 barrels a day), is already reducing its purchases from Iran. And if HPCL (about 65,000 barrels a day) and Indian Oil (about 50,000 barrels a day) also do the same, they could qualify for a possible US waiver.

Meanwhile, India is in ongoing talks with Russia for third-party banking, with none other than the PM having requested his counterpart during his visit to Moscow in December, to allow the RBI to deal with the Central Bank of Iran through Russia's Vnesheconombank.

Meanwhile, India has re-opened channels with the top Iranian leadership, despite the recent tension with Teheran over our negative vote at the International Atomic Energy Agency. None other than Ali Akbar Velayati, an enormously seasoned Iranian diplomat, former foreign minister, as well as the current adviser to Iranian supreme leader Ali Khamenei, visited India late last month.

Velayati was in Delhi and Aligarh to participate in a function of Aligarh Muslim University. In Delhi, he met Vice-President Hamid Ansari, an erudite former diplomat and ambassador to Iran, as well as other senior officials.

The Indian side is believed to have told Velayati that the anti-Iran vote at the IAEA should be seen as a one-off event, and confirmed India-Iran's civilisational ties and inheritance.

As for the Americans, officials say India will largely ignore US unhappiness on this score, pointing out that if both countries are growing allies and partners, the US must also understand India's concerns.


Don't you just love it when the hood unites and tells Americans to get lost. lol
 
Cabinet directs placing IP project on fast track


Islamabad—The Cabinet has directed the Ministry of Petroleum and Natural Resources to undertake the Iran-Pakistan (IP) gas pipeline project on fast track basis, and reduce unaccounted for gas (UFG) losses from 12 percent to 6 percent, official sources told reporter. The Cabinet gave these directions at a time when the country is facing ruthless gas load shedding, leading to law and order situation in the country.

Last week, the Economic Coordination Committee of the Cabinet (ECC) had approved the appointment of Financial Advisor (FA) as per the procedure and confirmed the decision of steering committee to the extent of provision of irrevocable sovereign guarantee and arranging equity committee by the public sector entities (PSEs).

The Cabinet was informed on January 3, 2012 that the current gas production in the country is over 4 BCFD, whereas the demand is over 6 BCFD. The transmission and distribution of gas is done mainly by the two gas utility companies—SSGC and SNGPL—and partially through direct supplies by producers. Historically, gas demand during winter increases due to manifold increase in consumption in the domestic sector, in almost all areas on SNGPL system and in some areas of SSGC system.

The estimated natural gas demand supply position on gas network of both gas utility companies for winter 2011-12 depicts a shortfall ranging from 668 MMCFD to 1061 MMCFD. To ensure optimal utilisation of natural gas for the best socio-economic development of the country, the natural gas allocation and management policy 2005 was approved by ECC for implementation during high demand and/or short supply periods. However, to share the burden of gas shortages by all sectors, keeping in view socio economic considerations, the sectoral priority order is not being followed for last few years, and every winter separate gas load management programs are being approved, as a practice.

While hearing constitutional petitions on the issue, the Peshawar and Sindh High Courts, through separate decisions, have directed the federal government and gas utility companies to adhere to Article 158 of the Constitution while dealing with all stakeholders in the respective provinces vis-à-vis the supply of gas. The decisions have literally led to restricting gas load management to Punjab.

The decisions taken in the meeting chaired by Minister for Petroleum and Natural Resources with stakeholders on 16th December 2011 were presented to the Cabinet for approval.

The decisions were as follows: (i) Domestic and commercial sectors would continue to get normal gas supply, across the country; (ii) SSGC system-Fauji Fertilizer Bin Qasim will be supplied 50 MMCFD gas during December 2011 and thereafter the plant will go for annual turnaround for 60 days; (iii) CNG stations will observe one day and two nights as gas holidays per week; (iv) Captive power plants (CPPs) and general industry will be closed on every Sunday; (v) Kotri and Jamshoro plants will be supplied no gas from December 2011 till February 2012; (vi) KESC will be supplied upto 65 MMCFD during December 2011 and up to 110 MMCFD during January and February 2012 and up to 120 MMCFD in March 2012, depending upon availability; (vii) Pak Steel will be supplied gas as per its allocation of 29 MMCFD ; and (viii) no gas load management in Balochistan.

SNGPL System: (i) CNG stations will observe three gas holidays per week, which may go up to 4 days in January and till mid-February depending upon domestic load; (ii) industrial sector will observe three and half gas holidays per week in January and February, which may be increased depending on domestic sector loads; (iii) all fertilizer plants will go on annual turnaround/ maintenance till 15th March 2012; (iv) no gas load management in Khyber Pakhtunkhwa and; (v) no gas shall be available for general industry and CP units having ninemonths gas supply contracts. The rest of the industry may also face curtailment as domestic load increases.

Gas supplies to following power plants will continue: Guddu-90 MMCFD, Liberty Power-50 MMCFD, Engro Power-75 MMCFD, Rousch-85 MMCFD and FKPCL-19MMCFD. There will be no gas supply to power plants of Pepco and IPPs where SNGPL has no contractual obligation.

After detailed discussion on gas shortage in the country, the Cabinet also decided that Prime Minister will immediately inaugurate the Kunar Pashagi gas field to get 100 MMCFD gas and four synthetic plants, two each in SNGPL and SSGC, will be installed to add another 200 MMCFD gas to the system.

Wow that's China India and Pakistan snubbing the Americans
 
Problem is Aryan those damn sanctions are having a effect on doing business with Iran, China and India are the losers because we import more oil than any other country. What do we do about the sanctions and why did China not veto it when it was put up in the UN?
 
This sanction scheme won't work. None of the Asian countries are interested into this. Even close American allies like Japan and Korea are hesitating to make a comment.

As to Iran, I thought the country has a strong industry/science research etc, why does it still heavily rely on oil export?
 
This sanction scheme won't work. None of the Asian countries are interested into this. Even close American allies like Japan and Korea are hesitating to make a comment.

As to Iran, I thought the country has a strong industry/science research etc, why does it still heavily rely on oil export?



Sanctions are having a effect though in doing business with Iran how can we get around this?


http://www.haaretz.com/print-edition/news/israel-to-push-china-on-iran-sanctions-1.266027


Pressure is there but we need to trade with Iran but USA is making life hard for everyone.
 
Problem is Aryan those damn sanctions are having a effect on doing business with Iran, China and India are the losers because we import more oil than any other country. What do we do about the sanctions and why did China not veto it when it was put up in the UN?

they haven't been to the UN I think. China would use its veto and probably Russia too. its cool Indians and Russians will just swap currencies like Russia did with iran when push comes to shove hopefully
 
Problem is Aryan those damn sanctions are having a effect on doing business with Iran, China and India are the losers because we import more oil than any other country. What do we do about the sanctions and why did China not veto it when it was put up in the UN?

I think we should all get together in London - preferably at Leicester Square - i know an excellent sheesha place. Their we should put together a plan to put stringent sanctions on behalf of India China and Iran and boycott everything American - what you say boys? BTW - I will pay for the sheesha. :azn:
 
Just for one nation's view for Iran .. we India , China and Pakistan can't afford to give up Iranian oil.. Energy in form for our countries is growth engine.. and cost of energy is tightly coupled with inflation .. we can't afford to suffer 2.5+ billion ppl to suffer just bcos some country on other side of world don't know how to resolve issues diplomatically..
 
I think we should all get together in London - preferably at Leicester Square - i know an excellent sheesha place. Their we should put together a plan to put stringent sanctions on behalf of India China and Iran and boycott everything American - what you say boys? BTW - I will pay for the sheesha. :azn:


Sounds like a plan :tup: im in

---------- Post added at 10:24 PM ---------- Previous post was at 10:23 PM ----------

Just for on nation's view for Iran .. we India , China and Pakistan can't afford to give up Iranian oil.. Energy in form for our countries is growth engine.. and cost of energy is tightly coupled with inflation .. we can't afford to suffer 2.5+ billion ppl to suffer just bcos some country on other side of world don't know how to resolve issues diplomatically..


But what are we going to do? the sanctions are already there and the wheels in motion.
 
No more bucks for Iranian-Russian trade

Published: 10 January, 2012, 18:33

The American dollar will no longer be used in trade between Iran and Russia, and will be replaced by their national currencies in bilateral trade.

*According to the Iranian Ambassador to Moscow, Seyed Reza Sajjadi, the proposal to switch to the rouble and the rial came from Russian President Dmitry Medvedev at a meeting with Mahmoud Ahmadinejad, during the Shanghai Cooperation Organization summit in Kazakhstan.

The move follows sanctions imposed by the European Union, the U.S. and the United Nations against Iran over its nuclear program. The Islamic Republic has already replaced the dollar with national currencies in its oil trade with India, China and Japan.


“I think it’s relatively positive for the Russian currency, actually as for any currency which is used when bilateral contracts are enumerated in this currency”, says Evgeniy Nadorshin, chief economist of JSFC Sistema.


“This was expected taking into account that the United States can no longer support the stability of its own currency. That’s the major problem… Many countries are switching to more stable currencies, to make it more comfortable for them to fulfil trade obligations. And this trend will continue”, he added.

And Russia as well??? Guys I wish we could be united on so much more What a block!!!
 
Last I heard we wanted to pay Iran in Rupees but they do not import many Indian products so I can't see this working from their point of view.
 

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