America’s double standards

Recently, the United States re-imposed sanctions against Iran’s oil exports to punish Tehran, what it said, for its involvement in several Middle Eastern conflicts. Washington had been pushing governments to cut imports of Iranian oil to zero. But, fearing a price hike that would also impact adversely US allies, it granted waivers on sanctions to Iran’s biggest buyers – China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey. That will allow the eight, which account for about 75 percent of all Iran’s oil exports, to import oil for another 180 days. This is display of double standards, as other countries are likely to suffer a lot more from the sanctions. On August 2, 2017, the US President Donald Trump had signed into law the “Countering America’s Adversaries Through Sanctions Act” (Public Law 115-44) (CAATSA), which among other things, imposed new sanctions on Iran, Russia, and North Korea.
India is the world’s third-biggest oil importer, and also Iran’s second-biggest oil customer and will be one of the most exposed to a forced drop in supply because of its relative proximity to Iran. As two Indian companies are importing oil from Iran, India was expecting tough measures for oil; however, the US has extended waiver to India and its allies to trade with Iran. By allowing India to trade with Iran, it will be a retreat and humiliation of US President Trump. Indian media also claims that such facilitation will be till India goes to polls in 2019. Such claim is aimed at neutralizing the humiliation due to Trump’s refusal to attend the Republic day gathering in India. Anyhow, Bernstein Energy expects “Iranian exports will average 1.4-1.5 million barrels per day during the exemption period,” down from a peak of almost 3 million bpd in mid-2018.
Once the waivers expire after 180 days, new waivers are expected to be issued, with a source in China saying his country would likely receive another six months of exemptions, though at a lower rate of around 220,000 bpd. Earlier, the US President had issued a Executive Order “Authorizing the Implementation of Certain Sanctions Set Forth in the Countering Americas Adversaries Through Sanctions Act” to further the implementation of certain sanctions in the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) with respect to the Russian Federation. In addition, the Secretary of State has taken two actions to implement his delegated authorities pursuant to section 231 of CAATSA and to further impose costs on the Russian Government for its activities. Any person who knowingly engages in a significant transaction with any of the persons on LSP is subject to mandatory sanctions under CAATSA section 231.
In consultation with the Secretary of the Treasury, the Secretary of State had imposed sanctions on the Chinese entity Equipment Development Department (EDD) and its director, Li Shangfu, for engaging in significant transactions with persons on the LSP. These transactions involved Russia’s transfer to China of Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment. Section 231 of CAATSA and today’s actions are not intended to undermine the military capabilities or combat readiness of any country, but rather to impose costs on Russia in response to its interference in the United States election process, its unacceptable behavior in eastern Ukraine, and other malign activities. These actions further demonstrate the Department of State’s continuing commitment to fully implement CAATSA section 231, which has already deterred billions of dollars-worth of potential arms exports from Russia, as it encourages all persons to avoid engaging in transactions with entities on the LSP that may risk sanctions.