The Secret China Iran Oil Deal At The Heart Of One Belt One Road Project
A secret oil deal between China and Iran at the heart of the One belt One Road project will change the geopolitical balance of power in the Middle East. The manufacturing products created by utilizing cheap Iranian resources will be used to crack the western markets through the China-Iran axis along with unrestricted access to Iranian military bases. As always Indian policymakers have been caught in this changing dynamics leaning heavily on one player after other without a clear vision of its own.
Contents
1 The Secret China Iran Deal
2 The 12% Discount
3 One Belt One Road
4 The Military Element
5 Iranian Sanctions & JCPOA
6 Indian Energy Dependence
The Secret China Iran Deal
In 2016 an agreement was signed to signify the 25-year China-Iran strategic partnership. So to take this forward, last August, Iran’s Foreign Minister, Mohammad Zarif, paid a visit to his Chinese counterpart, Wang Li, to present a roadmap.
Though the information in the updated agreement was not revealed, last week former Iranian President Mahmoud Ahmadinejad gave a clear hint to some secret parts of this deal. He stated that:
“It is not valid to enter into a secret agreement with foreign parties without considering the will of the Iranian nation and against the interests of the country and the nation, and the Iranian nation will not recognize it.”
EXCLUSIVE
The Galwan Valley standoff is a Chinese pre-emptive measure in response to India’s Darbuk–Shyok–DBO Road infrastructure project in Ladakh. The DBO road project is seen by the Chinese as a tool to offset the China Pakistan Economic Corridor.https://t.co/XkqUVkKN8h
— GreatGameIndia (@GreatGameIndia) June 17, 2020
The 12% Discount
This deal, signed just last year states that China will invest US $280 billion in expanding Iran’s oil, gas, and petrochemicals sectors. This amount being given by China will be front-loaded into the first five-year period of the new 25-year deal, and further investments will be available in each subsequent five year period, provided that both parties agree.
Another US $120 billion of investment will be for upgrading Iran’s transport and manufacturing infrastructure, this amount will increase in each subsequent period, should both parties agree.
Just to begin with, Chinese companies will bid on any stalled or uncompleted – oil, gas, and petrochemicals projects in Iran. China is granted the offer to buy any and all oil, gas, and petchems products at a minimum guaranteed discount of 12 per cent.
One Belt One Road
The 25-year deal outlines that China will help in the build-out of Iran’s core infrastructure, which will be in alignment with China’s key geopolitical multi-generational project, ‘One Belt, One Road’ (OBOR).
EXCLUSIVE
US Secretary of State Mike Pompeo has said that the US is deploying troops from Germany to India
One of the reason Pompeo gave for reducing American troop presence in Europe was the recent clash between India and China at Galwan Valleyhttps://t.co/XK6bFXEvfm
— GreatGameIndia (@GreatGameIndia) June 26, 2020
China aims to utilize the cheap labour available in Iran to build factories with master infrastructure. These will be financed, designed, and overseen by big Chinese manufacturing companies. The final manufactured products will then go to the Western markets through new transport links, also planned, financed, and managed by China.
There are also plans to establish a Tehran-Qom-Isfahan high-speed train line.
https://www.blacklistednews.com/article/77584/the-secret-china-iran-oil-deal-at-the-heart-of-one-belt-one-road.html