U.S. sanctions Indian petrochemical company for Iran oil purchases
#GS-02 International Relations
- The Joint Comprehensive Plan of Action (JCPOA) was signed by President Barack Obama, in 2015 and dismantled in 2018 by President Donald Trump.
- The JCPOA resulted from prolonged negotiations from 2013 and 2015 between Iran and P5+1 (China, France, Russia, the United Kingdom, the United States + Germany).
- Iran had agreed to significantly cut its stores of key components for nuclear weapons like centrifuges, enriched uranium and heavy water in return for the West’s promise to lift the economic sanctions.
- The International Atomic Energy Agency (IAEA) played an important role in enforcing the deal, keeping a check on Iran and inspections.
- US has withdrawn from the deal in 2018 but UN sanctions remain lifted but they would automatically “snap back” in place for 10 years, with the possibility of a five-year extension, if Iran violates any aspect of the deal.
- Countering America’s Adversaries Through Sanctions Act (CAATSA) is a law enacted by the US congress in 2017 and was meant to punish countries having deep engagements with Russia, North Korea, and Iran through economic sanctions.
- The CAATSA contains 12 types of sanctions on persons engaged in a “significant transaction” with Russia, North Korea, and Iran.
- The US President was given the authority in 2018 to waive CAATSA sanctions on a case-by-case basis.
- India and Iran have been sharing close civilizational ties since the times of the Mesopotamian Civilisation and Indus Valley Civilisation.
- The “Tehran Declaration” was signed during the Prime Ministership of Atal Bihari Vajpayee’s visit to Iran which affirmed the shared vision of the two countries for an “equitable, pluralistic and co-operative international order.”
- Till 2019 Iranian Oil made up about 11% of India’s oil intake which has since been reduced to negligible levels.