Showing posts with label Central Asia. Show all posts
Showing posts with label Central Asia. Show all posts

Saturday 19 August 2023

Iran requires US$9 billion for developing Makran Coast Line

The Secretary of Makran Coast Development Council said developing the cost line requires three years of work and US$9 billion of investment, Fars News Agency reported.

Speaking to Fars, Hossein Dehghan said the need for developing the cost line came under the spotlight nearly 15 years ago when stressed by the Leader of the Islamic Revolution Seyyed Ali Khamenei.

“Over the past 15 years, important measures have been taken in this regard, however, it has not been enough,” Dehghan noted.

According to the official, distance from the center and lack of infrastructure have been the two main obstacles in the way of attracting investment in the mentioned region.

Makran is a historical region in Iran that runs from mountains west of Jask all the way to parts of Pakistan's Baluchistan province in the southwest along the Sea of Oman.

Iran has recently constructed significant nautical and commercial infrastructure in a number of Makran districts, particularly at Chabahar port, which serves as a vital trade route between the Indian Ocean and landlocked nations in Central Asia.

Earlier in June, the head of Iran’s Ports and Maritime Organization (PMO) announced a plan for attracting over US$390 million of domestic investment in the Makran Coast.

Ali-Akbar Safaei said that so far, the private sector has invested more than US$215 million in the region and the country’s small ports.

He also noted that good measures have been taken in the foreign investment sector, which will hopefully bear results soon.

Back in November 2022, President Ebrahim Raisi called for a quick development of the south and southeastern shores of Iran, namely the Makran coastline.

Raisi stated that plans for the development of the Makran coasts by the government and the private sector might assist the comparatively underdeveloped region.

Friday 14 April 2023

Iraq key destination of Chinese investment

In recent years, Iraq has become one of the leading destinations for Chinese investments in the Middle East and a crucial link in Beijing's Belt and Road Initiative (BRI).

To capitalize on its geostrategic location and central position within the Chinese BRI, Iraq is seeking to develop a sprawling new 54-square-kilometer port project in the far southern town of al-Faw, known as al-Faw Grand Port, which will reduce the country’s reliance on Arab Gulf ports and overland transit from Iran and Turkey for its imports.

The project also underscores Iraq’s growing economic rivalry with neighboring Iran, as both countries seek to carve out a similar niche in handling regional transit traffic.

A number of hurdles have hampered Iraq’s efforts to diversify its economy, including extreme underinvestment and widespread corruption. There are some signs that change may be on the horizon.

Earlier this month, Baghdad reached an agreement with France’s TotalEnergies to move forward with a massive, long-delayed US$27 billion energy project, highlighting the potential for foreign investment and partnerships to contribute to Iraq’s economic growth and development.

This follows an earlier deal, announced in July 2021, between the Iraqi Ministry of Oil and China National Chemical Engineering Co. (CNCEC), whereby CNCEC will develop an integrated petrochemicals and refining complex at al-Faw capable of producing 300,000 barrels per day (bpd) of oil as well as, in a later second phase, 3 million tons per annum (mtpa) of petrochemicals.

International companies are increasingly showing interest in investing in Iraq's energy and infrastructure sectors in particular. This could help to improve the country’s economic prospects and reduce its reliance on oil exports, which accounted for 95% of its federal budget revenue in 2022.

The success of projects like these will depend on a range of factors, including security conditions, political stability, and the government’s ability to create a favorable investment climate.

The al-Faw project includes the construction of a new port, dry dock, oil terminal, dry canal, and associated transportation infrastructure, and once completed, it is expected to become one of the main pillars of Iraq's economy. According to recent reports, phase one is set to be finished in 2025 and will have the capacity to handle 20-45 mtpa of cargo.

The dry canal will provide land connectivity to the Turkish border via road and rail, linking up with port and rail infrastructure in Turkey, especially in Mersin and Istanbul. If successfully completed, al-Faw could leverage its location and connectivity with Turkey and Syria to become a leading container terminal and one of the largest ports in the world.

In December 2022, Basra hosted the second al-Faw International Conference, the focus of which was to highlight the al-Faw port and dry canal. Iraq’s central goal is to link this project with China's broader BRI and bill it as part of an alternative route to the Suez Canal and the North-South Corridor. China’s overall investment in the Middle East, North Africa, and Turkey between 2005 and 2022 totaled US$273 billion.

Iraq has become an increasingly important partner for China in recent years, with a particular focus on the energy sector. Beijing inked deals with Baghdad worth US$10.5 billion in 2021 alone.

Chinese companies have secured contracts to develop and operate several major oil and gas assets, including the Rumaila and Halfaya oil fields. Chinese firms have also been involved in building and operating power plants and other infrastructure projects in Iraq, in addition to investing in telecommunications and agriculture. China's investments have contributed significantly to Iraq’s economic development and have strengthened economic ties between the two countries.

The focus on al-Faw and China’s investments in Iraq has also underscored neighboring Iran’s limited role in international transit and trade, an area in which Tehran punches far below its weight. Given its central location and status as a land bridge between South and Central Asia and the Middle East, Iran should play a major role in both the East-West and North-South corridors — the former connects the Caucasus, Central Asia, and China to the Middle East and Europe via Iran, while the latter links Russia and Central Asia to the Persian Gulf and India through Iran — but Tehran has not capitalized on either opportunity.

Despite its natural advantages, Iran has failed to become an important strategic hub for the transportation of goods due to a combination of factors, including economic sanctions, political instability, and outdated transportation infrastructure, especially for railways and ports.

The development of al-Faw Port in Iraq could represent a further challenge to Iran’s aspirations in this area. Ali Hosseini, the head of the Transport and Logistics Commission of the Iran Chamber of Commerce, believes that, in the future, al-Faw will become a major competitor for Iran.

With help from Turkey and the UAE, Iraq is trying to link al-Faw to Iraq’s national railway and connect that railway to Turkey in the north, creating an alternative transportation corridor that will likely have a negative impact on Iran's transit traffic to Turkey.

At present, an estimated 90% of transit traffic through Iran moves by road. While there is an existing railway between Iran and Turkey, it is limited and often disrupted by political tensions between the two countries.

The volume of trade between Iran and Turkey is significant, reaching US$6.42 billion in 2022, up from US$5.59 billion the year before, but the lack of reliable transportation infrastructure has hindered its growth.

Officials in Tehran have accused the United States of interference and suggested that Baghdad is under pressure from Washington to impede Iran’s development of a viable north-west transit corridor.

They also claim that Turkey is exerting influence on Iraq to back its railway link to Asia, in line with Ankara’s ambition of becoming a regional hub for energy and communication.

As a result, it is highly likely that Iran will use Iraq’s actions in this space as leverage in their bilateral negotiations over energy and agricultural trade, and this could potentially strain the relationship between the two countries in the future.

 

Saturday 21 January 2023

Iran: Container shipping line from Chabahar to Indian ports

Spokesman of Iran’s Valfajr Shipping Company says his company is operating a regular container shipping line from Chabahar port to various ports in India.

According to Abbas Kabousi, 15 voyages have been conducted along the mentioned line over the past three months, ISNA reported.

“The first vessel with a full capacity of 550 TEU arrived in Chabahar from Indian ports a few weeks ago and its cargo has been completely unloaded,” Kabousi said, adding that his company is ready to transport more goods between Indian ports and Chabahar port.

The official noted that his company has also been operating some direct lines from Persian Gulf Arab countries to Chabahar port.

“Valfajr Shipping Company has reduced the time of cargo transportation on the route from the southern ports of the Persian Gulf to Chabahar while reducing the freight rate and improving the schedules,” he said.

Kabousi further said the shipping company is ready to launch a direct line from Oman to Chabahar port.

Back in May 2022, Iran’s Ports and Maritime Organization (PMO) announced that three direct container shipping lines were launched from Chabahar Port to Nhava Sheva and Kandla ports in India as well as Jebel Ali Port in United Arab Emirate.

Iran and India had previously launched shipping lines between Chabahar and the Indian ports of Mumbai, and Mundra.

The first shipping route between the two countries was put into operation in 2017 between Iran’s Chabahar port and Mumbai.

In January 2019, Iran and India inaugurated the second direct shipping route which passes through Mumbai, Mundra, Kandla, Chabahar, and finally Bandar Abbas in southern Iran.

India is using the mentioned shipping routes to transit goods to Afghanistan and Persian Gulf nations as well as the countries in Central Asia.

Through Chabahar port India bypasses Pakistan and transport goods to Afghanistan and Central Asia, while Afghanistan can get linked to India via sea.

Iran has awarded India the project for installing and operating modern loading and unloading equipment including mobile harbor cranes in Shahid Beheshti Port in Chabahar.

The strategic Chabahar port in southeastern Iran is the only ocean port on the Makran coast and it has a special place in the country’s economic affairs.

Back in September 2021, Indian Prime Minister Narendra Modi had called on Central Asian countries to benefit from Chabahar Port capacities for expanding their trade in the region.

 

Sunday 14 August 2022

US wages almost 400 military interventions

Since I have started writing blogs, one of my assertions has been that United States is the biggest warmonger as well initiator of regime change programs around the world. This agenda is aimed at serving producers of lethal arsenal in the United States as well foreign policy objectives.

The United States has waged nearly 400 military interventions since its founding in 1776, according to a new research published lately. According to the study by the Military Intervention Project, A New Dataset on US Military Interventions, 1776–2019, half of those conflicts and other uses of force occurred between 1950 and 2019. 

More than a quarter of them have taken place since the end of the Cold War. Out of the nearly 400 military interventions, 34% have been in Latin America and the Caribbean; 23% in East Asia and the Pacific region; 14% in West Asia and North Africa; and 13% in Europe and Central Asia.

The authors find that US interventions have increased and intensified in recent years. While the Cold War era (1946 – 1989) and the period between 1868 – 1917 were the most militaristically active for the United States, the post-9/11 era has already taken the third spot in all of US history and most of that military adventurism has been in West Asia. 

It says, “These interventions have only increased and intensified in recent years, with the US militarily intervening over 200 times after World War II and over 25% of all US military interventions occurring during the post-Cold War era.”

Until the end of the Cold War, US military hostility was generally proportional to that of its rivals. Since then, the US began to escalate its hostilities as its rivals deescalate it, marking the beginning of America’s more kinetic foreign policy.  

The study reads, “Some scholars have explained such increasing interventionist trends as part of the new norm of contingent sovereignty, which explicitly challenges the traditional principle of non-intervention in the internal affairs of other states. Particularly regarding the US, one perspective is that the country is evolving past its Cold War doctrine.”

The study notes, “US military interventions to promote geopolitical interests cannot explain the dynamics of the post-Cold War era. If the US primarily intervenes when its security interests are threatened, we expect the US to intervene less in an era void of peer competitors where fewer vital interests are arguably at stake.”

The authors point out that other researchers have asserted the US uses force abroad without a clear organizing principle and thus its military missions have had disastrous long-term and unintended consequences.

In 2018, a co-author said, “Current patterns of US military engagement as kinetic diplomacy, diplomacy solely through armed force,” the research says, in the past years.

While US Ambassadors are operating in one-third of the world’s countries, US special operators are active in three-fourths. 

A challenging aspect of measuring military interventions is how to define an intervention, the research notes. The study highlights that the definition of US military intervention may fall under any of the following categories.

The movement of regular troops or forces of one country inside another one in the context of some political issue or dispute. To separate higher intensity interventions from minor skirmishes, this definition excludes paramilitaries, government-backed militias, and other security forces that are not part of the regular uniformed military of a state. 

Similarly, “Events must be purposeful, not accidental.” Inadvertent border crossings are not included in this definition and neither are unintentional confrontations between planes or naval ships. The definition excludes soldiers engaging in exercises in a foreign land, transporting forces across borders, or on foreign bases. Furthermore, the definition categorizes international military interventions by temporal guidelines so that interventions are continuous if repeated acts occur within 6 months of one another.

Instances in which the United States has used its Armed Forces abroad in situations of military conflict or potential conflict or for other than normal peacetime purposes...Covert operations, disaster relief, and routine alliance stationing and training exercises are not included here, nor are the Civil and Revolutionary Wars and the continual use of US military units in the exploration, settlement, and pacification of the western part of the United States.

The political use of military force involving ground troops of either the US Army or Marine Corps in an active attempt to influence the behavior of other nations

Use of armed force that involves the official deployment of at least 500 regular military personnel (ground, air, or naval) to attain immediate term political objectives through action against a foreign adversary

Routine military movements and operations without a defined target like military training exercises, the routine forward deployment of military troops, non-combatant evacuation operations, and disaster relief should be excluded

Militarized interstate disputes are united historical cases of conflict in which the threat, display, or use of military force short of war by one member state is explicitly directed towards the government, official representatives, official forces, property, or territory of another state

 This recent pattern of international relations conducted largely through armed force, it noted, has increasingly targeted West Asia and Africa. These regions have seen both large-scale U.S. wars, as in Afghanistan and Iraq, and low-profile combat in nations such as Burkina Faso, Cameroon, the Central African Republic, Chad, and Tunisia.

The authors say “the U.S. has increased its military usage of force abroad since the end of the Cold War. Over this period the U.S. has preferred the direct usage of force over threats or displays of force, increasing its hostility levels while its target states have decreased theirs. Along the way, the regions of interest have changed as well. Up until World War II, the U.S. frequently intervened in Latin America and Europe,” but beginning in the 1950s, the U.S. shifted its focus to West Asia and the North Africa region.

The data comprises confirmed covert operations and low-profile interventions by Special Operations forces, however, it points out that US government secrecy and scrupulous sourcing standards of the public database it studied guarantees that the post-9/11 tally is an undercount.

The post-9/11 era appear to be the third most active for US interventions of relatively higher hostility levels. In this era, threats of force are absent, while the use of force has been overwhelmingly commonplace. Since 2000 alone, the US has engaged in at least 30 military interventions. 

Experts say that the Pentagon has likely used secretive authority to carry out combat beyond the scope of any authorization for the use of military force or permissible self-defense.

They point out that while secretive “127e” programs in Somalia and Yemen for instance overlap with well-known US military interventions, other uses of the authority, such as in Egypt and Lebanon, may not. The same goes for even lesser-known programs like “Section 1202”.  

US military conflicts have provided American arms manufacturers with ample opportunity to make a profit and prolong the country’s history of violence based on its founding. 

According to the Stockholm International Peace Research Institute (SIPRI), Global military expenditure is estimated to have been US$1,917 billion in 2019, the highest level since 1988. 

With a military expenditure of US$732 billion, the US remained by far the largest spender in the world in 2019, accounting for 38% of global military spending. The US spent almost as much on its military in 2019 as the next 10 highest spenders combined.

Today, SIPRI puts the cost of the US military at more than US$800 billion annually, accounting for almost 40% of global military spending.

 


Tuesday 14 June 2022

Understanding significance of TRACECA

Established in May 1993 in Brussels, Transport Corridor Europe Caucasus Asia (TRACECA) is an international transport program involving the European Union and 12 member states of the Eastern European, Caucasus, and Central Asian region. 

The program aims at strengthen economic relations, trade, and transport in the regions of the Black Sea basin, South Caucasus and Central Asia.

At the conference, it was agreed to implement a program of a European Union funded technical assistance to develop a transport corridor on a west-east axis from Europe, across the Black Sea, through the Caucasus and the Caspian Sea to Central Asia.

TRACECA members include Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan. All are signatories to the multilateral agreement, and only Turkmenistan has yet to ratify the agreement.

According to the portal of Iran’s Transport and Urban Development Ministry, the country is eying expansion of TRACECA. The issue was brought up during a meeting between Head of Iran Road Maintenance and Transportation Organization (RMTO) Dariush Amani and TRACECA Secretary General Asset Assavbayev.

According to Amani, the meeting focused on the development of international road transport cooperation with TRACECA member countries and increasing the volume of transit through this corridor.

Amani noted that following the policies of the government, RMTO is implementing new strategies to actively and effectively participate in international forums, regional treaties and join international conventions on transportation.

Various steps have been taken in this regard, including joining the transport of perishable goods (ATP) and the International Carriage of Dangerous Goods by Road (ADR) treaties, participating in the electronic version of the International Carriage of Goods by Road (e-CMR) convention, as well as the successful implementation of the project (E-TIR), the official said.

Amani stated that there are great areas for cooperation between the member states of the TRACECA agreement with the Islamic Republic of Iran, and added, “We are therefore interested in making the best use of the various projects and courses offered or held each year under the framework of the said agreement at the secretariat or in other member states.”

The RMTO head has also called on the Assavbayev to take the necessary measures to eliminate or reduce significant tariff barriers and unconventional tolls imposed by some TRACECA member countries on the international road fleet crossing those countries in order to realize the goals envisioned for the corridor.

According to Amani, during the meeting Assavbayev stated that the Islamic Republic of Iran is an active member of TRACECA and the main link between Central Asia and Europe.

“The main purpose of these talks is to develop cooperation and implement TRACECA programs through the Islamic Republic of Iran; In this regard, the main concern is to reduce transportation costs and increase cross-border traffic in order to optimize trade activities,” he said.

Tuesday 17 May 2022

Deliberations on payment mechanism in Afghanistan-Pakistan trade

During the first deliberation session on barter trade and other irritants facing Afghanistan-Pakistan trade, members from various relevant trade bodies and Chambers, the house unanimously resolved, “It is better to use banking channels for financial transactions”. 

The barter can be added as an alternative, umpteenth number of countries trade with Afghanistan and use third party payment method via international corresponding banks and face no sanctions and problems from any international agency like FATF.

These countries include CARs, Turkey, South Korea and some Far eastern countries, UAE, some European countries, China and India. The foremost action expected from State Bank of Pakistan is to discuss this with international corresponding and local commercial banks with support of Ministries and OFAC (A US Treasury sub agency) to remove barriers for Pakistan to bring in much needed foreign currency. This has been pending since a year and business community has voiced the issue at all levels.”

Later house deliberated all aspects relating to barter trade mechanism with Afghanistan and agreed that the process shall be developed carefully keeping in view the matters of credibility, integrity, efficiency, legality, government’s role, dispute resolution and arbitration, matters of sales tax refund and duty drawback, readiness of PSW, FBR, Pakistan Customs and where necessary the role of SBP to amend the needed clauses to support barter trade mechanism.

The house suggested that barter trade shall be started on trial basis for 3 months and re-evaluated for its feasibility. The matters of deficit and surplus, starting with zero rated categories like pharma and food items, relaxing and reducing duties on Afghan products to bring competitiveness with other countries like India and identification of 10 or more items initially for barter from both sides to ensure balance of trade were discussed.

To manage payments, it will require escrow account which must have multiple signatories to ensure transparency and formation of check and balance system.

Sales tax refunds and duty drawback are already a big issue in case of trade via land which will enhance in case of barter, to counter this, Jawed Bilwani, President PAJCCI, suggested to process barter trade under “Export Processing Zones” mechanism to make it better organized and easily monitored with less stress for business community.

The legality and framework for this alternate will be worked out and proposed to the Ministry accordingly. Additionally a SRO needs to be finalized prior to ensure the mechanism of Sales tax refund and duty drawbacks without further regulatory requirements else the interest of business community in this arrangement will be lost and a lucrative trading opportunity will not realize the full potential.

 

Barter trade shall only be used as alternate and shall not include products and companies which are already trading in dollars. Use of foreign exchange companies was not well received as it will increase the element of illegal payments and may fall under FATF regulations.

PSW & FBR system must have special module under this category for efficient management and to be linked with PAJCCI to reduce duplication of efforts and paper work while verifying transactions and arranging payments.

Zubair Motiwala said, “Detailed report of the session will be shared with participants, further cross border sessions will be held in coming weeks and later with Afghan side as joint session to finalize the proposal to be presented to both governments”.

He stated that PAJCCI strongly believes that using established banking procedures is preferable for trading but will use its experience to bring about viable barter trade mechanism while keeping in view all legal and practical requirements.

 

Friday 25 February 2022

The reasons United States wishes to bring Ukraine under NATO clan

Ever since Ukraine debacle has started I am being asked, why Russia wishes to subjugate Ukraine? Today I read a post in which reasons were given Russia wants to conquer Ukraine. Aren’t these the same reasons United States also wishes to bring Ukraine in the NATO clan. The game resembles old cowboy gun bout, where the winner was who pulled the trigger first.

Ukraine ranks:
1st in Europe in proven recoverable reserves of uranium ores;
2nd in Europe and 10th in the world in titanium ore reserves;
2nd in the world in explored reserves of manganese ores (2.3 billion tons, or 12% of the world’s reserves);
2nd largest iron ore reserves in the world (30 billion tons);
2nd in Europe in mercury ore reserves;
3rd in Europe (13th place in the world) in shale gas reserves (22 trillion cubic meters)
4th in the world by the total value of natural resources;
7th in the world in coal reserves (33.9 billion tons)

Ukraine is an agricultural country:
1st in Europe in arable land area;
3rd in the world by the area of black soil (25% of world’s volume);
1st in the world in exports of sunflower and sunflower oil;
2nd in the world in barley production and 4th in barley exports;
3rd largest producer and 4th largest exporter of corn in the world;
4th largest producer of potatoes in the world;
5th largest rye producer in the world;
5th in the world in bee production (75,000 tons);
8th in the world in wheat exports;
9th in the world in the production of chicken eggs;
16th in the world in cheese exports.
Ukraine can meet the food needs of 600 million people.

Ukraine is an industrialized country:
1st in Europe in ammonia production;
2nd in Europe’s and 4th largest natural gas pipeline system in the world (142.5 billion cubic meters of gas throughput capacity in the EU);
3rd largest in Europe and 8th largest in the world in installed capacity of nuclear power plants;
3rd in Europe and 11th in the world in rail network length (21,700 km);
3rd in the world (after the US and France) in production of locators and locating equipment;
3rd largest iron exporter in the world
4th largest exporter of turbines for nuclear power plants in the world;
4th world’s largest manufacturer of rocket launchers;
4th in the world in clay exports
4th in the world in titanium exports
8th in the world in exports of ores and concentrates;
9th in the world in exports of defence industry products;
10th largest steel producer in the world (32.4 million tons).

(Source: Andriy Futey)

Sunday 13 December 2020

Iran, India and Uzbekistan meeting on Chabahar Port

Iran, India, and Uzbekistan are scheduled to hold their first online meeting on cooperation in Iran's Chabahar Port on Monday, 14th December 2020, the Indian Ministry of Foreign Affairs announced.

The trilateral working group meeting will be jointly chaired by Deputy Ministers of Iran and Uzbekistan and a secretary from India, Hindustan Times reported.

The announcement came a day after Uzbek President Shavkat Mirziyoyev proposed during a summit with Prime Minister Narendra Modi that a trilateral meeting should be held with Iran to promote Chabahar port.

According to the website of the Indian Ministry of Foreign Affairs, the Indian Government welcomes Uzbekistan's interest in using Chabahar port, in Southeastern Iran, as a transit port, which provides economic opportunities for traders in the region.

In addition to Uzbekistan, other Central Asian countries have shown interest in using the port.

“This would open up economic opportunities for the traders and business community of the region. Besides Uzbekistan, other Central Asian countries have also shown interest in using the port. India seeks to cooperate closely with regional countries on this issue,” the statement by the Indian ministry said.

India currently operates one of the terminals of Chabahar port and offers loading and unloading services in the mentioned terminal.

“The strategic project has been given a waiver from sanctions imposed by the United States on Iran in view of its importance in shipping cargo and humanitarian assistance to Afghanistan," the report highlighted.

Following an India-Uzbekistan Summit on Friday, Adarsh Swaika, Joint Secretary (Eurasia), Indian External Affairs Ministry, said the two sides had discussed the ways to overcome the lack of overland connectivity.

Mirziyoyev gave his in-principle concurrence to joining the International North-South Transport Corridor (INSTC) when Modi reiterated a proposal on Uzbekistan’s participation in the project.

“We would welcome any initiative that increases connectivity between Afghanistan and Uzbekistan or with other Central Asian countries,” Swaika said.

Chabahar Port, the only Iranian ocean port, is a strategic port with unique opportunities that can attract investments from Iranian and foreign private sectors.

The development of the Chabahar Port is important for the economic development of regional countries and in this regard endorsing regional agreements with neighboring countries are of significant importance for Iran so that it can increase its transit share to connect the shores of the Indian Ocean to Russia, northern Central Asia, and the Caucasus.