India: The Value of an Iranian Friendship

In the face of bolstered U.S. and EU sanctions against Iran, the Indian government is blatantly and publicly discussing ideas on how to circumvent the sanctions and maintain a close trade relationship with Iran. India’s energy competition with China is a large part of what is driving India’s decision-making on this issue, but there are several other geopolitical interests India is considering in demonstrating its intent to openly flout U.S. and EU sanctions on Iran.

Analysis

While the United States and its European allies struggle to get other countries and companies to enforce a new round of sanctions against Iran, the Indian government is openly discussing ways of getting around those sanctions. Details of a report on this subject from the Indian Ministry of External Affairs were leaked to The Times of India recently. The report, called “International Sanctions on Iran and Way Forward for India-Iran Relations,” suggests several “creative mechanisms” that would allow Indian firms to continue trade with Iran without getting caught in the sanctions dragnet.

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