Rising Powers Wary over Escalation in Iran Deal Dispute

Policy Alert #188 | May 13, 2019

On April 22, 2019, United States Secretary of State Mike Pompeo announced that the US would cease granting exemptions to countries that import oil from Iran as part of its effort to unravel the Joint Comprehensive Plan of Action (JCPOA) from which it withdrew last year: “[W]e will no longer grant any exemptions. We’re going to zero – going to zero across the board. We will continue to enforce sanctions and monitor compliance. Any nation or entity interacting with Iran should do its diligence and err on the side of caution. The risks are simply not going to be worth the benefits.” Many prominent US allies and trade partners, such as India, Japan, South Korea, and member states of the European Union, continued their trade with Iran in the last year under the waiver program, as have rising powers China and Russia. In response to this action, Iran announced that it would restart part of its nuclear program. The US has since deployed an aircraft carrier to the Persian Gulf. While the two sides escalate tension, the Rising Powers are airing their frustrations with being caught in the middle.

 

CHINA
Answering questions at a regularly scheduled press conference, Chinese Foreign Ministry Spokesperson Geng Shuang expressed China’s support of Iran: “China applauds Iran’s faithful implementation of the JCPOA so far. We will continue to work with all parties to uphold and implement the JCPOA, safeguard the international non-proliferation regime, peace and stability in the Middle East and the lawful and legitimate rights and interests of Chinese companies.”

 

INDIA
In a press briefing on April 23, 2019, the Indian Ministry of External Affairs acknowledged it was preparing to abide by US policy: “Government has noted the announcement by the US Government to discontinue the Significant Reduction Exemption to all purchasers of crude oil from Iran. We are adequately prepared to deal with the impact of this decision. Ministry of Petroleum and Natural Gas has already issued a statement in this regard. Government will continue to work with partner nations, including with the US, to find all possible ways to protect India’s legitimate energy and economic security interests.”

 

JAPAN
At press conference, Deputy Chief Cabinet Secretary Yasutoshi Nishimura emphasized Japan’s cooperative relationship with Iran: “We note that Iran denies it is withdrawing from the nuclear deal. We intend to contribute to regional peace and stability, utilizing our traditional friendly relations with Iran.”

 

RUSSIA
The Russian Foreign Ministry condemned the US’s actions in the dispute: “[N]ot only did it withdraw from the JCPOA a year ago, not only did it blatantly and defiantly impose unilateral sanctions on Iran later on in violation of UN Security Council’s Resolution 2231, but it attempts to exert economic and political pressure in order to force other states not to implement the above-mentioned resolution and to impede their normal economic cooperation with Iran.” Russian Foreign Minister Sergey Lavrov urged the European signatories of the agreement to hold fast against US threats: “Let me stress once again that specific obligations were assumed there. Russia is committed to honoring them in full. We expect our counterparts, primarily Europeans, who expressed their willingness to find a solution to the problem created by the Americans, to keep their promises as well.”

 

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