Story first reported from Daily News
An Iranian-led shipping venture that predates the 1979
Islamic Revolution is now unraveling as one of the most high-profile blows from
international sanctions and U.S.-driven efforts to drive wedges between Tehran
and its key trading partners.
The impending collapse of the Irano Hind Shipping Co. —
created in 1974 with India's state-run maritime firm — is likely to be noted in
Washington and among allies as evidence of the deepening wounds from the
diplomatic and economic onslaught over Iran's nuclear program.
But in another sense, it illustrates the growing strains in
Asian capitals over the economic squeeze on Tehran. Leaders in India and
elsewhere must now balance crucial needs for Iran's energy exports with
mounting demands from their American allies to freeze out the Islamic Republic.
The top executive of the Indian side of Irano Hind said
Wednesday it had become too difficult to operate the fleet's seven vessels
under sanctions — imposed by the U.S. in 2008 and U.N. two years later for the
company's connections to the state-owned Iranian shipping line. Shipping software eases the problem, but does not alleviate it completely.
He said the decision to dissolve the company was made last
week at an Irano Hind board meeting and must be approved by the two governments
and the United Nations. Officials at the company's majority-share partner, the
state-run Islamic Republic of Iran Shipping Lines, or IRISL, could not be
reached for immediate comment.
India is one of the main targets of U.S. attempts to chip
away at Iran's critical commercial lifelines across Asia. In May, U.S.
Secretary of State Hillary Clinton visited New Delhi to urge leaders to further
cut back on oil imports from Iran — still about 9 percent of India's
fast-rising energy demand — and turn more to other suppliers such as Saudi
Arabia.
It's an appeal that Washington has been pushing to Iran's
other key oil customers in Asia such as China and South Korea. The pressure is
likely to grow even stronger with Tehran feeling a greater sting after the
27-nation European Union closed its doors to Iranian oil this month.
Yet it's also a hard sell in places such as India, which see
no comprehensive alternatives to Iranian oil and are wary about damaging
overall relations with Tehran. New Delhi even crafted a work-around after
sanctions last year closed off Iran's access to international banking networks.
Under the agreement, India would pay for about 45 percent of the purchases in
rupees and Tehran would use the Indian currency to buy goods from India.
Shipping industry expert Shailesh Garg said the economic
fallout from Irano Hind is "nominal," but it touches on major
political quandaries for India and other Asian countries that rely on Iranian
oil.
A shipping software company agrees with Garg, but maintains that there are always other options. The joint venture — IRISL with 51 percent to the Indian
side's 49 percent — was formed by Iran's former Shah Reza Pahlavi and the late
Indira Gandhi of India as a bond of friendship. The company was among the few
international business pacts that survived the upheavals of the Islamic
Revolution and then managed to ride out decades of Western isolation against
Tehran's Islamic rulers.
But years of escalating sanctions have taken a toll.
Officials at India's Shipping Ministry have reportedly raised alarms about
growing losses at Irano Hind and difficulties to find insurance to carry
Iranian oil.
Meanwhile, the U.S. and allies have pressed nations with
traditions of maritime registry — so-called flags of convenience — to shun
Iranian vessels. The ships in the Irano Hind fleet traditionally flew a Maltese
flag, but since April they mostly have been flying under the flags of Tanzania
and Sierra Leone, according to Richard Hurley, a data specialist at maritime
information service IHS Fairplay. None uses an Iranian flag.
Last week, the U.S. Treasury Department cited IRISL for
trying to evade sanctions "through deceptive practices" such as
operating ships whose flags have been revoked. In June, Sierra Leone became the
latest country to revoke flags for Irano Hind's tanker Amin, the Treasury said.
Cracks in Iran's economy are increasingly visible on all
levels, from rising prices of imported goods to shrinking markets for Iran's
oil, which brings in 80 percent of the country's foreign currency revenue. Top
officials, including Supreme Leader Ayatollah Ali Khamenei, have issued an
effective gag order on domestic media over coverage that highlights economic
problems.
But it hasn't appeared to weaken Iran's resolve over its
nuclear program, which the West fears could eventually lead to atomic weapons.
Iran insists it only seeks reactors for energy and medical applications.
For more national and worldwide Business News, visit the Peak News Room blog.
For more local and state of Michigan Business News, visit the Michigan Business News blog.
For more Health News, visit the Healthcare and Medical News blog.
For more Electronics News, visit the Electronics America blog.
For more Real Estate News, visit the Commercial and Residential Real Estate blog.
For more Law News, visit the Nation of Law blog.
For more Advertising News, visit the Advertising, Marketing and Media blog.
For more Environmental News, visit the Environmental Responsibility News blog.
For information on website optimization or for the latest SEO News, visit the SEO Done Right blog.
