The Hindu : Front Page : Iran "not calling off" LNG deal

Online edition of India's National Newspaper
Thursday, Sep 29, 2005

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Iran "not calling off" LNG deal

Amit Baruah

"We did not expect India to [vote that way]. But friends should not be judged by a single action."

NEW DELHI: The $ 21 billion agreement between Iran and India for the export of five million tonnes of liquefied natural gas is ``still in force and passing through ... [its] normal process," the Iranian Embassy in New Delhi stated in a press release. Meanwhile, the BBC has reported Ali Agha Mohammadi of Iran's Supreme National Security Council (SNSC) as saying Iran had no plans to withdraw from the LNG export deal.

Referring to Indian media reports on the possibility of the LNG export deal and the gas pipeline project being called off, the press release declared that "the agreements arrived at between the two countries are still in force and passing through their normal process.'' Giving some background, the Iranian Embassy quoted Ali Larijani, secretary of the SNSC, as saying the resolution passed by the Board of Governors of the International Atomic Energy Agency "lacks legal foundation and Iran expects the member states to review it.'' As for India's vote for the resolution, Mr. Larijani added: "We did not expect India to do so. [But] I believe the friends should not be judged by a single action. Iran enjoys friendly relations with India."

Earlier, the Indian External Affairs Ministry spokesperson confirmed that "we are aware of the remarks made by the Iranian Ambassador to our Ambassador in Vienna," but added that in high-level interactions in New Delhi, "we have been given no indication of Iran's intentions to review its longstanding and extensive cooperation with India."

The first part of the official spokesperson's statement relates to an exclusive report published in The Hindu on a September 24 communication from Vienna by the Indian Ambassador on Iran's decision to call off the LNG export deal, in the wake of India's vote at the International Atomic Energy Agency Board of Governors meeting. The second part refers to subsequent interactions between the Foreign Secretary and the Iranian Ambassador in India.

The official spokesperson's statement reads:

"We are aware of the remarks made by the Iranian Ambassador to our Ambassador in Vienna. We have also seen remarks made by the Iranian spokesman concerning economic cooperation with countries that had voted in favour of the resolution on the Iranian nuclear programme at the IAEA.

"The Foreign Secretary [Shyam Saran] has met the Iranian Ambassador in Delhi [Siavash Zargar Yaghoubi] and explained the background to our decision to vote in favour of [the European Union] EU-3 resolution at the IAEA. The importance which India attaches to maintaining traditionally close relations with Iran have also been reiterated. We have been given no indication in these interactions of Iran's intentions to review its long-standing and extensive cooperation with India which is of benefit to and in the interest of both countries."

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