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Monday, June 17, 2024

Would Iranian President Ebrahim Raisi’s death impact Bharat-Iran ties?

Bharat’s Vice-President Jagdeep Dhankar on Wednesday paid his tribute to Iranian President Ebrahim Raisi, who along with his Foreign Minister was killed in a helicopter crash on Sunday.

Dhankar was in Iran this Wednesday to pay his respects to Iranian President Ebrahim Raisi, Iran’s Foreign Minister Amir-Abdollahian, and various other Iranian officials who got killed in the crash. He also met the country’s acting President Mohammad Mokhber to convey his condolences.

The chopper carrying Iran’s President Ebrahim Raisi, his Foreign Minister, and various other officials disappeared over a mountainous region on Sunday evening. The rescue team was unable to reach the spot immediately, owing to fog and bad weather conditions. Thus, the wreckage of the helicopter was discovered by the rescue teams the next day, who later concluded that there was no sign of life on the crash site.

Following the news of Raisi’s death, PM Modi, along with many other world leaders, conveyed his condolences.

“Deeply saddened and shocked by the tragic demise of Dr. Seyed Ebrahim Raisi, President of the Islamic Republic of Iran. His contribution to strengthening India – Iran bilateral relationship will always be remembered. My heartfelt condolences to his family and the people of Iran. India stands with Iran in this time of sorrow” (PM Modi on X).

Bharat also observed a day of state mourning on 21st May following the Iranian President’s death. As per the protocol, the National Flag was flown at half-mast at the Rashtrapati Bhavan to pay condolences to Iranian President Ebrahim Raisi, his Foreign Minister Hossein Amirabdollahian, and other officials in a helicopter crash.

Bharat’s delicate and prompt response to the news of the death of the Iranian President and his Foreign Minister speaks volumes of the significance it attaches to its bilateral relations with Iran within its foreign policy framework. Iran has been a significant partner of Bharat culturally. The two countries have enjoyed historical trade and cultural ties. Moreover, since the Cold War ended, Bharat’s foreign policy has been characterized by a balanced approach to dealing with West Asia, a region that is strategically significant for Bharat. Within West Asia, Iran which shares borders with both Pakistan and Afghanistan, is especially significant.

Iranian President Ebrahim Raisi was known for his pro-trade policies and his pro-Bharat position. When Raisi took oath as the President of Iran in 2021, Bharat was one of the few nations to be invited to be a part of the oath-taking ceremony. Bharat’s External Affairs Minister, S Jaishankar represented Bharat at the ceremony.

Bharat’s bilateral trade with Iran reportedly reached 2.33 billion USD in 2022-23, increasing by about 21 percent when Raisi took over as Iran’s President; from 1.94 billion USD in 2021-22 to 2.33 billion USD in 2022-23, as per various media reports.

Raisi’s death comes on the heels of Bharat signing the historic Chabahar Pact with Iran, a 10-year pact to construct and operate the country’s strategic Chabahar port. The Chabahar Port deal had been in offing for long, stuck due to multiple reasons. Finally, Bharat made the breakthrough, defying the US threat of sanctions. As Bharat announced the Chabahar Port deal, the US government threatened it with sanctions. Although the US didn’t directly name Bharat, it issued a warning to “anyone” considering business deals with Iran, hours after the two countries signed the Chabahar Port Agreement. The US said any country doing business with Iran should be aware of the “potential risk of sanctions”.

The Chabahar Port is strategically significant for Bharat as it provides the country with an alternative route to enhance trade ties with Afghanistan and central Asian countries, bypassing Pakistan. Developing the Chabahar port reduces Bharat’s dependence on Pakistan’s Gwadar and Karachi ports in the long term. It is significant that both Karachi and Gwadar ports received Chinese investments worth 4.7 billion USD between 2016 and 2023 as part of the Belt and Road’s Maritime Silk Road strategy in the region.

Thus, the Chabahar Port project deal helps Bharat counter China’s BRI in the Indian Ocean region. It also provides Bharat with significant access to Eurasia and the right to transit across Eurasia for resilient connectivity and economic growth. The most important aspect of the Chabahar Port agreement is that it helps Bharat bypass Pakistan to gain connectivity to Eurasia, thus bypassing China’s hegemonic influences on Pakistan which has traditionally blocked Bharat’s access to Eurasia.

Under the Chabahar Port contract signed between India Ports Global Ltd (IPGL) and Ports and Maritime Organization (PMO), IPGL will invest 120 million USD in developing Chabahar Port’s Shahid Behesti Port Terminal, and the Ministry of External Affairs of Bharat will extend a 250 million USD credit line to bolster infrastructure connectivity around Chabahar and further enhance its role as a regional connectivity hub.

Although Bharat announced its plans to invest in Iran’s Chabahar Port way back in 2005, a formal agreement regarding the strategic port was signed between Tehran and New Delhi only in 2015. The project gained momentum in 2016 when Bharatiya Prime Minister Narendra Modi pledged an investment of 500 million USD to develop the Chabahar Port during his visit to Tehran. Subsequently, a Memorandum of Understanding regarding the development of Chabahar Port was signed between New Delhi and Tehran in 2016.

An article published by Bharat’s well-known think tank Observer Research Foundation gives excellent insight into the geopolitical significance of the Chabahar Port deal for Bharat. “Indian investors and shippers were reluctant to invest in the Chabahar Port as India mainly used short term agreements for port operations. However, signing the 10-year deal with Iran on 13 May will boost investors’ confidence. It also highlights India’s assertive and proactive foreign policy in the face of disruptions in the global supply chains following the pandemic, the conflict in Ukraine, and the Middle-East crisis. Furthermore, New Delhi can use the Trans-Caspian International Transport Route (TITR), sometimes called the Middle Corridor via the Western Route of INSTC, to gain access to the Eastern European markets, the Caspian region and beyond. Indian policymakers should view the investments in Chabahar Port and INSTC as a strategic counter to China’s growing regional influence amidst geopolitical contestations. For this commitment, private investors who see the 10-year agreement on Chabahar as an opportunity should be given tax rebates”, says the article.

Although Ebrahim Raisi’s sudden death shouldn’t impact the Chabahar Port project deal as such, it could certainly delay the progress of the deal. Raisi’s death doesn’t change overall Iranian policy as such but it has certainly created a power vacuum which could lead to a lot of turmoil in Iran’s internal politics as to who will succeed Raisi. Thus, all Bharat can do in this context is adopt a wait-and-watch policy.

Ebrahim Raisi’s death comes at a time when West Asia is in the midst of heightened tensions amidst the Israel-Gaza conflict. As Bharat tries to delicate balance its bilateral relations with Iran and Israel, the question of who will be Raisi’s long-term successor has significant implications for Bharat-Iran bilateral relations.

As for the threat of US sanctions looming large in the wake of the Bharat-Iran Chabahar project deal, Bharat has to deal with it tactfully but firmly, without compromising its strategic and trade interests. Previously, when the US imposed sanctions against Iranian oil imports, Bharat resisted the sanctions for long, trying to develop alternate mechanisms for the import of Iranian oil, bypassing US sanctions. Eventually, though, Bharat had to stop importing oil from Iran.

However, in the case of Russian oil import, Bharat followed a different approach. Bharat continues to import oil from Russia despite US sanctions against Russia’s oil shipping syndicate. The result of Bharat’s aggressive diplomacy vis-à-vis import of Russian oil prioritizing its energy security led to US Treasury department officials visiting Bharat that there were no sanctions against Bharat for purchasing Russian oil.

Perhaps, Bharat needs to adopt the same steadfast approach prioritizing its self-interests for dealing with the US sanction threats vis-à-vis Chabahar port deal with Iran.

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Rati Agnihotri
Rati Agnihotri
Rati Agnihotri is an independent journalist and writer currently based in Dehradun (Uttarakhand). Rati has extensive experience in broadcast journalism having worked as a Correspondent for Xinhua Media for 8 years. She was based at their New Delhi bureau. She has also worked across radio and digital media and was a Fellow with Radio Deutsche Welle in Bonn. She is now based in Dehradun and pursuing independent work regularly contributing news analysis videos to a nationalist news portal (India Speaks Daily) with a considerable youtube presence. Rati regularly contributes articles and opinion pieces to various esteemed newspapers, journals, and magazines. Her articles have been recently published in "The Sunday Guardian", "Organizer", "Opindia", and "Garhwal Post". She has completed a MA (International Journalism) from the University of Leeds, U.K., and a BA (Hons) in English Literature from Miranda House, Delhi University.

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