Japan Funds Development of Tuna Fisheries, Environmental Projects in Iran

Last month the Embassy of Japan in Tehran hosted a ceremony where two memorandums of understanding were signed new grants to support projects carried out by the United Nations Industrial Development Organization (UNIDO) and the United Nations Development Programme (UNDP) in Iran. The UN initiatives will support fisheries in Chabahar, on Iran’s southeastern coast, and help foster sustainable livelihoods for locals who live near Lake Urmia in the country’s northwest.

Attending the event were Kazutoshi Aikawa, the Ambassador of Japan; Maryam Javan Shahraki, UNIDO Representative in Iran; Claudio Providas, the UNDP Resident Representative in the Islamic Republic; Nabiollah Khoun-Mirzaei, Head of Iran Fisheries Organization; Ahmadreza Lahijanzadeh, Deputy for Marine and Wetlands at the Department of Environment; and representatives from Iran’s ministries of Agriculture and Foreign Affairs.

In his opening speech, the Japanese ambassador affirmed his country’s willingness to continue the expansion of its friendly relations with Iran.

“The government of Japan has decided to grant ¥676 million (about $6 million) to the Islamic Republic of Iran for the implementation of the two important projects,” Aikawa said.

The MoU signed with UNIDO will begin the third phase of the “Project for Promoting Inclusive and Sustainable Development of the Yellowfin Tuna Value Chain in Chabahar,” which started in 2017.

Javan Shahraki said that UNIDO and Japan have enjoyed a strong connection for decades and that their partnership encompasses all aspects of industrial development, from reducing poverty and promoting security in crisis-affected areas to trade, technology promotion and facilitating investment.

“Today we celebrate the signing ceremony of a Grant Aid ‘Project for Promoting Inclusive and Sustainable Development of the Yellowfin Tuna Value Chain’ in the strategic port of Chabahar in Sistan and Baluchestan Province,” Javan Shahraki said. “Building on earlier interventions to build the capacity of the tuna value chain in Chabahar, the new project will support the ability of local fishermen to access new markets while at the same time enhancing the sustainability of the fishery industry in Iran.”

Adding high-quality tuna to Iran’s list of regional and global exports is one of the main achievements of the UNIDO project in Chabahar, Javan Shahraki said. The project is also upgrading Chabahar Veterinary Laboratory and Iran Veterinary Lab with diagnostic kits and equipment; establishing sustainable links between private-sector companies in Iran and Japan; organizing study tours in Japan for Iranian fishermen, policymakers and laboratory experts; conducting workshops in Iran and Japan on marine cage culture, stock enhancement and after-catch management processes, on-site fishing and info-sharing for Iranian fishermen in Japan.

Javan Shahraki told Bourse & Bazaar that UNIDO has prioritised development activities in Iran, including strengthening the value chain of local and indigenous products.

“We are happy to have received Japan’s $3.5 million financial assistance for the project at hand,” Javan Shahraki said. “Chabahar’s yellowfin tuna has a competitive edge to it in the international markets compared with other tuna fish. Today marks the beginning of the third phase of our cooperation with Japan in this project. During the first phase, we studied the region’s ecology to see which species need to be focused on. Based on the research carried out by UNIDO as well as Japanese experts, Iran’s tuna fish was deemed one of extraordinary size, which in turn can generate a high value added. Yet, if harvest methods and ways of environment preservation are not improved, the fish could either fall prey to the danger of extinction or shrink in size. Right now, our tuna fish in Chabahar is three times as big as that of Japan.”

Using the government’s grant aid, UNIDO has trained local fishermen on best practices for harvesting and preserving yield quality during post-harvest procedures, and Chabahar’s quality control laboratories now have the equipment required for quality preservation.

Khoun-Mirzaei told Bourse and Bazaar that Iran has a huge capacity to produce tuna, but harvest and after-catch preservation methods are up to speed with the latest techniques used elsewhere in the world.

“This is why the collaboration between the UNIDO office in Tehran and the Japanese government is so significant, since it will upgrade our harvest knowledge, fishing equipment, quality-control methods and ecosystem preservation, and help our high-quality tuna find its way into international markets while enjoying higher value added,” Khoun-Mirzaei said.

Isa Golshahi, General Director of Iran Fisheries Organization’s Seafood Quality Improvement, Processing and Marketing Promotion Department, told Bourse and Bazaar that this project will ensure that generating higher values from the yellowfin tuna is more easily attainable.

“The fish indigenous to our waters has a high quality,” Golshahi said. “Through the cooperation with UNIDO and Japan, we can turn the tuna currently sold at prices lower than $2 per kilogram into products worth over $8 or in some cases $20 per kilogram.”

Japan Funds UNDP’s Lake Urmia Project

The second document signed during Wednesday’s ceremony marked the start of a new phase of collaboration between UNDP and the Japanese government on the “Project for Promoting Environmental Management and Sustainable Livelihoods in Lake Urmia and Other Wetlands.” Japan has provided a grant aid worth approximately US$3 million to continue work on Lake Urmia.

“The project has an environmental component but also has a focus on livelihoods,” Providas told Bourse & Bazaar. “To preserve the environment, you need to look at livelihoods as well. The important component is economic diversification and creating jobs. Can we improve water usage for farming but reduce the reliance of farming activities of around 250 villages around Lake Urmia on this endangered water body? This is what we are working on.”

Lahijanzadeh said that the Iranian government has so far spent around $1 billion on saving Lake Urmia and has been granted funds and technical assistance from Japan over several years.

“We hope to be able to transfer the knowledge and experience we have had with Japanese experts and UNDP assistance to Parishan Lake in Fars Province and Shadegan Wetlands in the southern Khuzestan Province as well,” Lahijanzadeh said.

In his speech, the Japanese ambassador said that in line with efforts to revive Lake Urmia and prevent it from drying up, the government of Japan has supported UNDP’s project for the lake’s restoration through sustainable agricultural practices and biodiversity conservation since 2014.

“In this new project, the knowledge and experiences gathered through all these years will be transferred to the remaining spots of the Lake Urmia basin, and it will also be disseminated to two other wetlands in Iran, which are facing similar problems,” Aikawa said.

Photo: IRNA

Iran and India Agree to Speed up Major Port Project

Tehran and Delhi have agreed to accelerate the development of an important Iranian port, India's foreign minister said during a visit to the sanctions-hit Islamic republic on Monday.

Chabahar port—being jointly developed by India, Iran and Afghanistan—is on the Indian Ocean about 100 kilometres (62 miles) west of the Pakistan border.

But development has stalled, despite waivers to sanctions that the United States began reimposing last year after withdrawing from a landmark 2015 nuclear deal with Iran.

"Just concluded a very productive #IndiaIran Joint Commission Meeting," Indian Foreign Minister Subrahmanyam Jaishankar tweeted.

"Reviewed the entire gamut of our cooperation. Agreed on accelerating our Chabahar project," he added as he wound up a two-day visit to the Iranian capital.

Washington withdrew from the nuclear accord and reimposed sanctions on Tehran as part of a campaign of "maximum pressure" aimed at reducing its arch-enemy's regional role and missile programme.

The rare exemptions from the sanctions are due mainly to the pivotal role of the port, and a planned railway line, in breaking landlocked Afghanistan's dependence on Pakistan for trade.

Iran's President Hassan Rouhani said Monday in a joint news conference with Jaishankar that the project would boost trade in the region.

"Completing the Chabahar-Zahedan railway and connecting it to Iran's national railway can elevate the position of Chabahar port, revolutionise regional commerce and help transport goods on a cheaper and shorter route," he said.

Rouhani said maintaining regional security was an important topic for Iran and India.

"In the current situation where America stands against nations with unilateral sanctions, we have to try to continue bilateral cooperation.

"This situation certainly will not last, and America will be forced to stop its maximum pressure against Iran sooner or later," he said, without elaborating.

India stopped buying Iranian oil after the US abolished waivers for some countries in May, in a move meant to wipe out the Islamic republic's main source of revenue.

Despite tensions in their relationship, Iran and India have sought to move forward and develop partnerships.

Photo: IRNA

Iran Looks to Remote Port to Beat US Sanctions

With the web of US sanctions tightening, Iran faces a host of challenges as it looks to an isolated port in the country's far southeast to maintain the flow of goods.

The port in Chabahar, only about 100 kilometers (62 miles) from the Pakistan border and located on the Indian Ocean, is Iran's largest outside the Gulf.

It is also the only Iranian port with exemptions from unilateral economic sanctions reimposed by the United States in 2018.

That is due mainly to the pivotal role of the port, and a planned railway line, in breaking landlocked Afghanistan's dependence on Pakistan for trade with the world, especially India.

Afghan trade as well as plans for a trading route by rail between central Asia and the Indian Ocean called the North-South Corridor are the main reasons the Islamic republic has invested one billion dollars in Chabahar's Shahid Beheshti port, official sources say.

"We will keep on developing this port... our rail network, road network and airport are all being developed, so that we can implement the North-South Corridor," Roads and Urban Development Minister Mohammad Eslami told AFP while visiting Chabahar for a development conference.

‘Traffic will Pick Up'

More than 200 hectares (almost 500 acres) of land have been reclaimed from the sea for the project and over 17.5 million cubic meters (618 million cubic feet) dredged, creating a 16.5-meter (54-foot) draught.

But more than a year since the new installations became operational in December 2017, business has yet to pick up.

The ships that officials say have docked in the past year have only loaded and unloaded 2.1 million tonnes of cargo, a far cry from the port's annual capacity of 8.5 million tonnes.

Only 20 ships have docked at the new section of the port and most of its three kilometers of waterfront remains unutilized, with new machinery and neatly lined-up cranes standing idle.

But authorities remain upbeat about the prospects for growth.

Hossein Shahdadi of the provincial ports and maritime authority said that in the first 11 months of the past Iranian year, which started on March 21, 2018, "there has been a 56 percent increase in cargo handled at the port compared with the previous year.”

"We've also had a 25 percent rise in the number of ships calling at the port" on the Gulf of Oman, he said.

Arun Kumar Gupta, managing director of India Ports Global Limited which has a 10-year concession at the new port, played down the startup issues.

"Any port will have a gestation period, there will be lulls but we are very sure that traffic will pick up," Gupta told AFP.

'Born with Sanctions'

The Indian company began work in December and has so far handled only an average of 60,000 tonnes of cargo per month.

But Gupta is counting on the port's proximity to India and Afghanistan to attract business.

Chabahar's location, however, carries its own risks as it lies in the volatile Sistan Baluchistan province where militant jihadists operate.

In December, a suicide attack on the local police headquarters killed two policemen.

During an investment conference in February, security was tight with many roads cut off and hundreds of armed security personnel deployed to protect delegates.

Apart from security concerns, US sanctions banning financial transactions with Iran make it ever harder to pay or receive payments.

Some like Afsaneh Rabiani, who runs a freight forwarding company, see Chabahar as an opportunity for "those willing to take the risk".

“I've been researching Chabahar for the past year and a half, and the infrastructure is now in place to do serious work here," she said.

As for the sanctions, Iran's roads minister said the challenge was nothing new.

"We were born with sanctions. Ever since the (1979 Islamic) revolution, we have been under sanctions and we are working on how to counter them," Eslami said, as he oversaw the unloading of a first shipment of Afghan goods lined up to be re-exported from Chabahar.

Photo Credit: IRNA

Iran, India Move Closer on Trade as EU Stalls

Iran will boost trade with India as the European Union struggles to find a way to circumvent a fresh US embargo on Tehran, Iranian Foreign Minister Javad Zarif said Tuesday.

Brussels is working on a payment mechanism to keep financial transactions flowing with Iran, after the US ditched the 2015 nuclear deal with Tehran earlier this year and reintroduced a raft of sanctions on the country.

But Zarif told reporters in New Delhi that the EU's delay in implementing the system meant Iran would look elsewhere.

"Europeans have made efforts but couldn't... progress up to our expectations. We will expand our cooperation via various channels such as India," Zarif said after meeting India's transport minister, as quoted by Iran's semi-official news agency ISNA.

The EU hopes its "special purpose vehicle" (SPV) announced in September will keep the nuclear deal alive and persuade Tehran to stay on board by giving companies a way of trading with Iran without violating Washington's sanctions.

But Brussels is struggling to find a host for the SPV and many EU companies are fearful of repercussions from US President Donald Trump's administration.

India, which imports around 80 percent of its oil needs, recently signed a deal with Iran to buy crude in rupees rather than US dollars, helping it get around the sanctions.

Zarif added that Iran was "very happy" that the Indian government was allowing the Iranian Bank Pasargad to open a branch in India's financial capital of Mumbai.

India also recently took over the running of part of Iran's Chabahar Port, in the Gulf of Oman, as the countries build closer ties.

“We hope, despite US sanctions, Iran and India will have more cooperation in line with the interests of the people and the two countries," said Zarif.

Photo Credit: IRNA

Iran Arrests 10 Over Suicide Attack on Police

Iranian police said Sunday that 10 people had been arrested in connection with a suicide attack in southeastern Iran that killed two police officers.

Jihadist separatist group Ansar al-Furqan has claimed responsibility for Thursday's assault in which an explosives-laden car was driven into a police station in the port city of Chabahar.

The authorities have rejected the claim of responsibility for the attack, relatively rare in Iran, which also injured around 40 people.

Police chief Hossein Ashtari said 10 people had been arrested, according to the conservative Fars news agency, without giving any details.

Ansar al-Furqan released a photo of the alleged suicide bomber on Saturday, identified as Abdullah Aziz, according to the Site Intelligence Group, which monitors jihadist activities. 

Sistan-Baluchistan province has faced decades-long insurgencies by Pakistan-based Baluchi separatists and Sunni Muslim extremists.

Iran has blamed the United States and Tehran's regional rivals, Saudi Arabia and Israel, for supporting the insurgent groups.

Photo Credit: IRNA

Suicide Bomber Kills Two in Southeast Iran

A suicide bomber killed at least two people and wounded many more outside police headquarters in the port city of Chabahar in restive southeastern Iran on Thursday, according to a revised official toll.

Chabahar lies in Sistan-Baluchistan province which has long been a flashpoint, with Pakistan-based Baluchi separatists and Sunni Muslim extremists carrying out cross-border attacks targeting the Shiite authorities.

"This terrorist act led to the martyrdom of two members of the police force," the province's deputy governor in charge of security, Mohammad Hadi Marashi, told state television.

Chabahar city governor Rahmdel Bameri said earlier that four people were 
killed and many more wounded when the bomber blew up a car, but later revised 
the death toll to two.

"The explosion was very strong and broke the glass of many buildings close by," Bameri told state television.

Many nearby shop owners and civilian passers-by, including women and children, were severely wounded, he added.

Chabahar lies some 100 kilometres (60 miles) west of the Pakistan border and is home to a large, mainly Sunni Muslim ethnic Baluchi community which straddles the two countries.

The number of assailants was not immediately clear.

"The terrorists tried to enter Chabahar police headquarters but they were prevented by the guards and they detonated the car bomb," Marashi said without elaborating on how many assailants took part.

Chabahar has a deep-water port on the Gulf of Oman and with Indian assistance Iran has been developing it as a  major energy and freight hub between Central Asia and India, bypassing Pakistan.

Photo Credit: Tasnim

US Exempts Indian-Backed Port in Iran from Sanctions

The United States said Tuesday it would exempt Iran's Indian-backed port of Chabahar from new sanctions on Tehran, recognizing the value of the project to Afghanistan.

Iran late last year inaugurated the port on the Indian Ocean which provides a key supply route to landlocked Afghanistan and allows India to bypass its historic enemy Pakistan.

The United States will exempt from sanctions the development of Chabahar along with an attached railway project and Iranian petroleum shipments into Afghanistan, the State Department said.

President Donald Trump's "South Asia strategy underscores our ongoing support of Afghanistan's economic growth and development as well as our close partnership with India," a State Department spokesperson said.

"This exception relates to reconstruction assistance and economic development for Afghanistan. These activities are vital for the ongoing support of Afghanistan's growth and humanitarian relief," the spokesperson said.

The United States, which has been building closer relations with New Delhi since the late 1990s, earlier exempted India from sanctions that took effect on Monday.

The Trump administration has vowed to exert maximum pressure on Iran to end its support for regional proxies, exiting a denuclearization agreement that brought sanctions relief.

Trump's decision has been opposed by European powers as well as other nations including India, which has largely warm relations with Iran and accuses Pakistan of fomenting attacks on its soil.

India has poured USD 2 billion into Afghanistan since the 2001 US-led overthrow of the extremist Taliban regime, which was also opposed by Iran.

India has seen Chabahar as a key way both to send supplies to Afghanistan and to step up trade with Central Asia as well as Africa.

Iran has plans to link the port by railway to Zahedan on the Pakistani border up to Mashhad in the northeast.

Photo Credit: IRNA

US's Haley Tells India to 'Rethink' Iran Ties

The US Ambassador to the UN Nikki Haley on Thursday urged India to reconsider its ties to Iran, one of its key energy suppliers, as fresh US sanctions on buyers of Iranian oil loom.

Washington has stepped up pressure on major Iranian customers to stop importing its oil, warning no trading partner will be exempt from new economic sanctions when they bite from November 4.

India imports the overwhelming majority of its oil and Iran is the third-largest supplier to the nation of 1.25 billion.

Haley said she understood India "can't change its relationship with Iran in a day" but said she used a meeting with Prime Minister Narendra Modi in New Delhi to encourage a reassessment.

"I also think for the future of India, and the future of being able to get resources and who they're dependent on, I would encourage them to rethink their relationship with Iran," she told broadcaster NDTV after an address in New Delhi.

"I think as a friend, India should also decide is this a country that they want to continue doing business with."

US President Donald Trump withdrew the United States from the Iran nuclear deal last month, re-imposing sanctions that had been suspended in return for curbs on Tehran's nuclear program.

US officials said Washington would be asking major Iranian customers to reduce their oil imports to zero, and warned no exemptions would be made when the sanctions were enforced.

Before the 2015 nuclear deal between Iran and six major powers, various buyers of Iranian oil including India had waivers or exemptions to US sanctions.

India's foreign ministry said Thursday however that the Islamic republic was a "very traditional partner" that enjoyed "historical, civilizational linkages" to India.

"She has her views, and ours views on Iran are very clear," said ministry spokesman Raveesh Kumar of Haley, whose two-day visit to India also included visits to holy sites in the Indian capital.

"We will take all necessary steps, including engagement with relevant stakeholders to ensure our energy security." 

No Rift

Haley's visit coincided with revelations that a long-anticipated meeting between US and Indian defense and foreign ministers, known as a 2+2, had been delayed for a second time.

The UN ambassador played down rumors of a rift, saying the meeting would be rescheduled "very soon" and was "an important sign of how much our security and defense cooperation has grown in recent years".

Washington has put new emphasis on its military ties to New Delhi and its regional role as a counter to China's rise.

But it could still fall foul of US sanctions imposed last August threatening sanctions on any country doing business with Russia's defense and intelligence sectors.

India, the world's top defence importer, had been in talks with Russia to buy missile systems when the sanctions were announced and New Delhi has said the embargo would not affect ties to Moscow.

Haley said Thursday that "anybody, any country, that does business with Russia... there are sanctions."

Photo Credit: Niki Haley Twitter