Monday, 13 May 2024

India to operate a terminal at Chabahar Port

Iran and India signed a long-term agreement on Monday based on which India Ports Global Limited (IPGL) will operate a terminal at the strategic Chabahar port as it seeks to expand trade in Central Asia.

The agreement was signed in a ceremony attended by Iranian Transport and Urban Development Minister Mehrdad Bazrpash and India’s Ports, Shipping, and Waterways Minister Sarbananda Sonowal in Tehran.

The signing of this agreement is considered a turning point in bilateral and regional commercial and economic cooperation, as well as facilitating strategic cooperation between Iran and India.

According to Sonowal, the agreement, which had been under discussion for some time, is going to clear the pathway for bigger investments to be made in the port., without a long-term agreement, it’s very difficult to invest in a port.

India expects the project will improve its connection with an international north-south transport corridor being developed with Iran and Russia and also improve trade links with Central Asia, Jaishankar said.

“We will see more connectivity linkages coming out of that port,” the Indian minister told local media earlier this week.

The Chabahar port serves as a gateway for Indian goods to reach markets in Afghanistan and Central Asia while bypassing India’s rival and neighbor Pakistan. India sent 20,000 tons of wheat aid to Afghanistan through the Chabahar port last year.

The cooperation between Iran and India on the strategic port dates back to 2003, when New Delhi agreed to develop the port as well as accompanying infrastructure links during the visit by then-President Muhammad Khatami to India. The project has suffered several delays since then and was weighed down by sanctions on Iran.

As Iran's only oceanic port on the Gulf of Oman, Chabahar Port holds great significance for the country both politically and economically. The country has taken serious measures to develop this port in order to improve the country’s maritime trade.

The port consists of Shahid Kalantari and Shahid Beheshti terminals, each of which has five berth facilities. The port is located in Iran’s Sistan-Baluchestan Province and is about 120 kilometers southwest of Pakistan’s Baluchistan Province, where the China-funded Gwadar port is situated.

Sunday, 12 May 2024

Where does US spend most of foreign aid?

Debates over US aid to Israel and Ukraine have dominated Washington this year, raising questions about its economic and military support to various allies and whether the nation spends too much support abroad.

Opposition within the GOP to foreign aid has been building, with Republicans arguing the US needs to spend more on border security. The debate is likely to color this year’s presidential race, and the reelection of former President Trump and his America First campaign could raise questions about funding for some partners. 

All figures come from State Department spending in fiscal 2023, with the addition of foreign aid appropriations for Israel and Ukraine last month.

Ukraine

Congress allocated US$61 billion for Ukraine in a foreign aid package signed late last month, following months of political fighting over whether to continue backing the country against a Russian invasion.

The funding nearly doubles what the US has invested in Ukraine since its war began in early 2022, bringing the spending total on the conflict to about US$137 billion between military and economic aid, according to the Kiel Institute.

Nearly all the military spending in the new aid package will be spent on domestic arms manufacturers, resupplying stockpiles sent to Ukraine to fight Russia. It also includes about US$8 billion for economic development and recovery in the country.

The spending deal has split the GOP House majority and nearly led to the ouster of Speaker Mike Johnson, after Rep. Marjorie Taylor Greene and two other GOP members cited the aid package as the last straw in filing a motion to vacate the Speakership. Johnson survived the vote with the support of Democrats.

The Russia-Ukraine war has dragged on for months, with Ukrainian leaders complaining of dwindling supplies as American arms shipments from a December 2022 aid package ran out.

“For months, while MAGA Republicans were blocking aid, Ukraine’s been running out of artillery shells and ammunition,” Biden said when he signed the new aid package last month. “Meanwhile, Putin’s friends are keeping him well supplied.”

The new US$61 billion expenditure is on top of about US$17 billion allocated in 2022 that was spent last year.

Israel

Israel has been the largest recipient of US foreign aid since World War II. The country has accepted more than US$300 billion since 1946, according to the Council on Foreign Relations, with more than US$220 billion of the figure in military aid.

Long considered the closest ally of United States in the Middle East, Congress has allocated between US$3 billion to US$4 billion per year to Israel consistently since the 1970s for its defense. Nearly the entire sum is provided through a State Department program allowing Israel to purchase US-manufactured arms and munitions for no cost.

That trend was bucked late last month, as the long-awaited foreign aid package included about US$15 billion in military aid for Israel amid its war with Hamas in Gaza. The package is the largest single-year allocation of aid for Israel in at least 50 years, according to the Council on Foreign Relations.

“We will always make sure that Israel has what it needs to defend itself against Iran and the terrorists it supports,” Biden said when he signed the aid package.

President Biden withheld an arms shipment to Israel last week, part of a pressure campaign urging Israel to not invade the city of Rafah in southern Gaza.

Biden said the US will halt future arms shipments if Israel enters the city, which Israeli leaders said Thursday it will likely do with or without US backing.

Jordan

Jordan is the third-largest recipient of US foreign aid, according to a State Department and USAID tracker of spending. About half of the funds allocated for the country in 2023 were for military aid.

That spending has already come in handy in the Israel-Hamas war, as Jordan joined the United States in defending Israel against a wave of Iranian drone and missile strikes last month. The unprecedented attack on Israel was completely shut down by the combined defenses of the three countries.

Jordan also assisted the US in airdrops of humanitarian aid into Gaza amid the conflict in March. 

Egypt

Foreign spending in Egypt has come under additional scrutiny in the last year after the indictment of Sen. Bob Menendez. Menendez, who stepped down as chair of the Foreign Relations Committee during the investigation, is accused of accepting hundreds of thousands in bribes from interests in Egypt.

After the indictment, Sen. Ben Cardin, who became foreign relations chair when Menendez stepped down, held back US$235 million bound for Egypt, criticizing the country’s dogged record on human rights and press freedom.

“Congress has been clear, through the law, that the government of Egypt’s record on a range of critical human rights issues, good governance, and the rule of law must improve if our bilateral relationship is to be sustained,” Cardin said in October last year.

Rep. Gregory Meeks the top Democrat on the equivalent House committee, made a similar request weeks earlier.

The controversy comes as Egypt plays a central role in the Israel-Hamas war. Egyptian diplomats have acted as intermediaries between Israel, the US and Hamas, and Cairo played host to cease-fire negotiations last week.

Ethiopia

Allocations to Ethiopia are nearly entirely humanitarian aid, as regions of the country struggle with a deep famine and civil unrest. The northern region of Tigray fell into an ethnic conflict in 2022, with rebel and government forces facing off as thousands starved.

USAID resumed food aid to the region in December, five months after it took the extraordinary step of halting its nationwide program over a massive corruption scheme by local officials.

The rare combination of droughts, conflict and other factors disrupting food supplies has made Ethiopia one of the largest recipients of US humanitarian aid. About one-sixth of Ethiopians received food aid before discovery of the food theft early last year.

Nigeria

Nigeria foreign aid spending is focused on health care and food access. The US spent about a quarter billion dollars on stemming the spread of HIV and AIDS in the country in 2023, according to USAID, as well as another US$130 million on other health needs.

The country also has areas where food is in critical need, sparking another quarter billion in spending for food access and other expenditures filed by the State Department under “emergency response.”

Most of the support is funneled through non-government organizations and charities operating in the country.

Somalia

Almost the entirety of funds allocated for Somalia is under emergency designation for food access as the country continues to struggle after decades of civil unrest.

About US$700 million of the expenditures are in partnership with the United Nations, which has had a constant presence in the country for decades amid a brewing civil war with breakaway Somaliland. Just more than US$100 million is set to fund UN peacekeeping missions in the country.

Kenya

In Kenya, US humanitarian assistance is spread between health, food access and economic development. The largest expenditure is in partnership with the World Food Program in the region, while the government also invested significant sums into fighting the spread of HIV and AIDS and supporting local agriculture.

 Courtesy: The Hill

 

 

Iraq:: Chinese to explore oil and gas

According to Reuters, Chinese companies won bids to explore five Iraqi oil and gas fields on Saturday in a licensing round for hydrocarbon exploration that was primarily aimed at ramping up gas production for domestic use.

An Iraqi Kurdish company also took two of the 29 projects up for grabs in the three-day licensing round across central, southern and western Iraq, which for the first time includes an offshore exploration block in the country's Arab Gulf waters.

Iraq aims to lure billions of dollars of investments to develop its oil and gas sector as it looks to ramp up local petrochemicals production and end imports of gas from neighbouring Iran that are currently key to producing power.

More than 20 companies pre-qualified for the licensing round, including European, Chinese, Arab and Iraqi groups.

Notably, there was no US oil majors involved, even after Iraqi Prime Minister Mohammed Shia met with representatives of US oil firms during an official visit to the United States last month.

Zhongman Petroleum and Natural Gas Group (ZPEC) took the northern extension of the Eastern Baghdad field, in Baghdad, and the Middle Euphrates field that straddles the southern Najaf and Karbala provinces, the oil ministry said.

China's United Energy Group Ltd won a bid to develop the Al-Faw field in southern Basra, while ZhenHua won a bid to develop Iraq's Qurnain field in the Iraqi-Saudi border region and Geo-Jade won a bid to develop Iraq's Zurbatiya field in the Wasit.

Two oil and gas fields were taken by Iraq's KAR Group - the Dimah field in eastern Maysan province, and the Sasan & Alan fields in Iraq's northwestern Nineveh province - the ministry said.

Around 20 more projects are open for bidding on Sunday and Monday.

Falah Al-amri, the Iraqi prime minister's advisor for oil and gas issues, said the government hoped the new projects would raise oil production to 6 million barrels per day by 2030 from around 5 million now.

The government also wants the projects to produce enough natural gas so that, along with plans to all-but eliminate gas flaring by 2030, Iraq could end imports.

"It is too early to talk about (gas) exports. We want to get self-sufficient," Al-amri told Reuters.

Iraq, OPEC's second-largest oil producer after Saudi Arabia, at one time had targeted becoming a rival to the Gulf Arab kingdom with output of over a tenth of global demand.

But its oil sector development has been hampered by contract terms viewed as unfavourable by many major oil companies as well as recurring conflict and political paralysis.

Growing investor focus in recent years on environmental, social and governance criteria have also had an effect.

Western oil giants such as Exxon Mobil Corp and Royal Dutch Shell Plc have departed from a number of projects in Iraq while Chinese companies have steadily expanded their footprint.

 

 

 

Saturday, 11 May 2024

Chevron denied claim for Iranian oil

Three insurance companies have rejected Chevron's claim over the seizure last year of an oil cargo by Iran, according to a complaint filed on Tuesday in a US court in California.

The Chevron-chartered tanker Advantage Sweet was boarded by Iranian military, opens new tab in the Gulf of Oman in April 2023 and its crude oil cargo confiscated and later transferred to an Iranian vessel.

Zurich American Insurance, Liberty Mutual Insurance and Great American Insurance asked a US District Court in San Francisco to uphold their rejection of Chevron's $57 million claim under both marine cargo and war risks policies the company held.

The seizure of the crude oil and its later expropriation by Iran do not constitute 'warlike operations,' the companies said of their denial of war risks coverage. Chevron's marine cargo policy also did not cover a seizure or confiscation, they told the court.

A Chevron spokesperson said the company contests the denial of insurance coverage.

"The military seizure by the Islamic Republic of Iran of the Advantage Sweet in international waters with Chevron's cargo aboard was a hostile act plainly covered by our insurance policies. We look forward to proving this in court," said Chevron spokesperson Christine Dobbyn.

Chevron chartered the Advantage Sweet to transport crude oil to Houston from the Neutral Zone area shared by Saudi Arabia and Kuwait, the complaint said. Chevron has oil production operations in the zone.

"Iranian Navy commandos boarded the Advantage Sweet while the vessel was in international waters in the Gulf of Oman on or about April 27, 2023 and seized control of the vessel and its cargo of crude oil," according to the complaint.

 

Iran assures energy supply to Afghanistan

Iran's Deputy Ambassador to Kabul, Hassan Mortazavi, highlighted Iran's commitment to serving as a dependable energy supplier to Afghanistan during a meeting with Abdul Latif Mansoor, the Acting Minister of Water and Energy of Afghanistan's caretaker government in Kabul.

Mortazavi expressed Iran's readiness to export energy to Afghanistan and emphasized the country's potential to play a crucial role as a reliable partner in this regard. He also expressed optimism about the completion of the Kamal Khan Dam, noting that water cooperation could strengthen ties between Tehran and Kabul, benefiting the Muslim populations of both nations.

Under the 1973 Helmand River Treaty, Iran is entitled to approximately 850 million cubic meters of Helmand water annually. However, due to drought and irregular water conditions in recent years, Iran's agreed-upon water share has not been fully met, leading to challenges for residents of Iran's Sistan and Baluchistan province. 

The Acting Energy Minister of Afghanistan acknowledged that a significant portion of Iran's water share has been provided thus far. The discussions between the two sides also encompassed topics related to water cooperation, including the energy supply chain between Iran and Afghanistan.

 

Trump not considering Haley running mate

Donald Trump said on Saturday that former Republican presidential candidate Nikki Haley was not being considered to be his running mate in the November 2024 election.

"Nikki Haley is not under consideration for the Vice President slot, but I wish her well!" Trump wrote on his social media platform Truth Social.

It was reported that Trump could pick Haley if he were convinced she could help him win the presidency, avoid a potential prison sentence and cover tens of millions in legal bills if he loses.

Haley, the former South Carolina governor and a former US ambassador to the United Nations, ended her long-shot challenge to Republican presidential frontrunner Trump in March this year.

Comment was not immediately available from Haley. While she has acknowledged that Trump, who repeatedly belittled her candidacy, would be the Republican nominee, Haley has not endorsed him.

There is already a long list of potential candidates for the vice president position that includes North Dakota Governor Doug Burgum, South Dakota Governor Kristi Noem, U.S. Senators Marco Rubio, Tim Scott and J.D. Vance, and US Representative Elise Stefanik.

Burgum and Scott competed against Trump for the 2024 Republican nomination before dropping out.

Noem has been embroiled in controversy after revealing in a memoir that she once shot a 14-month-old dog for being disobedient.

Trump does not seem in hurry to pick a running mate. He will not be formally nominated until the Republican convention in Milwaukee, Wisconsin, in July.

He will face President Joe Biden, a Democrat, in the November 05 general election.

 

 

Muslim World League inaugurates first Council of Southeast Asian Scholars

Sheikh Dr. Muhammad Al-Issa, Secretary-General of the Makkah-based Muslim World League (MWL) and Chairman of the Association of Muslim Scholars, has inaugurated the Council of Southeast Asian Scholars in Kuala Lumpur.

The ceremony was held under the patronage of Malaysian Prime Minister Anwar Ibrahim, with prominent scholars and muftis from ASEAN countries in attendance.

This new council represents the first comprehensive Islamic council in the Southeast Asian region, featuring senior muftis and scholars.

It also marks the first among the regional scholarly councils established globally by the MWL. The creation of the council is a direct outcome of the "Southeast Asian Scholars Conference," which took place in Kuala Lumpur on June 30, 2022, and received endorsement from the Prime Minister of Malaysia.