INDIA TO DECIDE ON IRAN CRUDE IMPORTS AFTER POLLS
15, May 2019
Prelims level : Economics Mains level : GS-III Technology, disaster management, environment, economic development
Why in News?
- India will take a call on the purchase of Iranian energy after the general elections
- Gulf after the U.S. waivers for supply of Iranian energy ended on May 2, prompting Tehran to declare that it would no longer be bound by the 2015 nuclear deal.
- President Hassan Rouhani has announced that Iran has given a 60-day timeline to the EU- 3 and other parties to the nuclear deal for restoring oil and banking channels.
- As part of the JCPOA, Iran was required to sell its surplus enriched uranium abroad, rather than store it inside the country.
What is Iran Nuclear Deal?
Formally known as the Joint Comprehensive Plan of Action (JCPOA), the nuclear deal was announced in 2015. The deal was signed between Iran and the P5+1 group (US, UK, France, Russia, China and Germany). It restricts Iran’s nuclear programme, in return for lifting most of the economic sanctions of against it.
Key Provisions of the Nuclear deal:
- Limits on uranium enrichment
- Limits on number of nuclear centrifuges (centrifuge is a device used to enrich uranium) Restrictions on plutonium enrichment- Stopping Iran from operating at Arak nuclear site which was used to make plutonium
- The deal increased the breakout time to 1 year.
US Withdrawal from Iran Deal
- International Atomic Energy Agency (IAEA) confirmed that Iran is complying with its obligations under the Nuclear Deal, however USA has decided to withdraw from the deal citing the following reasons:
- 1. The JCPOA fails to deal with the threat of Iran’s missile programme
- 2. The deal does not include strong mechanisms for inspections and verification.
- 3. Israel is also vehemently opposed the deal
France, Germany, UK, China, Russia and European Union announced that they remain
committed to the deal
- Israel and Saudi Arabia have welcomed US decision
- Iran announced that it remains committed to the deal but may resume uranium enrichment if the accord no longer offers benefits