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Iran’s Chabahar port is where Asian and Middle Eastern rivalries collide

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Iran’s Indian-back port of Chabahar, inaugurated months before the United States re-imposed sanctions on the Islamic republic, is where Asia and the Middle East’s multiple political conflicts and commercial rivalries collide.

Chabahar was destined to become a player in geopolitical and economic manoeuvring between China, India, Pakistan, Afghanistan, Saudi Arabia, the United Arab Emirates and Central Asian states even without the re-imposition of sanctions.

The sanctions have, however, significantly enhanced its importance as Iran struggles to offset the likely punishing impact of US efforts to force the Islamic republic to alter its foreign and defense policy and/or achieve a change of regime.

Iran sees the port together with the Indian-backed Chabahar Free Trade Zone, that hopes to host a steel mill and a petrochemical complex, as the motor of development of the Iranian section of the Makran coast. Iran’s province of Sistan and Balochistan shares the coast line with the Pakistani province of Balochistan, home to the Chinese-backed rival port of Gwadar.

Credit: GlobalVillageSpace

Saudi Arabia sees the Pakistani region as a launching pad of a potential effort by the kingdom and/or the United States to destabilizing the Islamic republic by stirring unrest among its ethnic minorities, including the Baluch. Saudi Arabia has put the building blocks in place for possible covert action but has to date given no indication that it intends to act on proposals to support irredentist action.

A study written by Mohammed Hassan Husseinbor, an Iranian of Baloch origin, and published by the International Institute for Iranian Studies, formerly known as the Arabian Gulf Centre for Iranian Studies, a Saudi government-backed think tank, argued that Chabahar posed “a direct threat to the Arab Gulf states” that called for “immediate counter measures.”

Mr. Husseinbor said Chabahar would enable Iran to increase market share in India for its oil exports at the expense of Saudi Arabia, raise foreign investment in the Islamic republic, increase Iranian government revenues, and allow Iran to project power in the Gulf and the Indian Ocean.

Saudi Arabia, months before the US re-imposition of sanctions, already sought to thwart development of Chabahar by stopping South Korea’s POSCO Engineering & Construction from moving ahead with a $1.6 billion agreement with Iranian steelmaker Pars Kohan Diar Parsian Steel (PKP) to build a steel mill in Chabahar. Saudi Arabia’s Public Investment Fund has a 38 percent stake in POSCO.

“This project mandatorily requires the decision of the board of directors. However, as relations between Iran and Saudi Arabia rapidly grew worse after a severance of diplomatic ties last year, outside directors in the board meeting are having negative stances on Iran projects, especially those requiring investment and JVC (joint venture company) establishment,” POSCO said in a letter to PKP. POSCO said it had difficulty “convincing and reaching consent on the unfavourable opinion from the outside directors.”

The POSCO letter signalled that Chabahar’s success would depend on the political will of governments with India and Iran in the lead rather than on any hope to attract private sector investment.

India was earlier this month forced to drop a demand that the winner of a bid to manage the Chabahar port pay an upfront US$8.52 million premium.

“We were charging a premium from the successful bidder to meet our preliminary expenses. But the shortlisted bidders said that the project is of strategic importance and is not commercially viable,” said an Indian official.

Indian Foreign Minister Sushma Swaraj insisted last month that her country would not bow to US pressure to adhere to the Trump administration’s sanctions. “India follows only UN sanctions, and not unilateral sanctions by any country,” Ms. Swaraj said.

Beyond the port’s economic importance for Iran, it will also likely allow the Islamic republic to increase its influence in Afghanistan at a time that the United States and Saudi Arabia are stepping up economic cooperation with Kabul in a bid to isolate both Iran and the Taliban.

For its part, Afghanistan sees the port as a way to reduce its transport dependence on Pakistan with which it has strained relations.

Despite the US cloud hanging over it, Chabahar’s potential significance goes beyond whether it will contribute to the Iranian effort.

India hopes that its US$500 million investment in the port will offer it a gateway to Afghanistan and land-locked Central Asia that constitutes an alternative to infrastructure related to China’s Belt and Road initiative, including the $50 billion plus China Pakistan Economic Corridor (CPEC), and an anti-dote to Chinese investment in Indian Ocean ports.

If geopolitics did not already amount to a full plate, Chabahar is likely, together with a host of ports in Saudi Arabia, Abu Dhabi, Oman and Qatar, to challenge the longstanding dominance in the Indian Ocean of Dubai’s Jebel Ali port.

Commercial competition between ports has been reinforced by the Saudi-Iranian battle for regional hegemony as well as the Gulf spat between Qatar and a Saudi-United Arab Emirates-led alliance that a year ago imposed an economic and diplomatic boycott on the Gulf state and the war in Yemen.

As a result, commercial, military and geopolitical drivers for port investment in the region have blurred and expanded the multiples rivalries into the Horn of Africa with the UAE and others, including Saudi Arabia, Turkey and Qatar jockeying for position in Sudan, Somalia, Ethiopia, Yemen and Djibouti.

Said NATO Defence College analyst Eleonora Ardemagni: “The political rift in the GCC (Gulf Cooperation Council) weakens economic integration prospects and as a consequence cooperation among commercial ports. The Qatari crisis opened a new chapter in intra-GCC relations marking the emergence of latent nationalism in the Arab Gulf region: the rising geopolitics of ports is going to further unveil this trend.”

Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Würzburg’s Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and three forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africaas well as Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.

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Ukraine crisis could produce an unexpected winner: Iran

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 Iran potentially could emerge as an unintended winner in the escalating crisis over Ukraine. That is, if Russian troops cross the Ukrainian border and talks in Vienna to revive the 2015 Iranian nuclear agreement fail.

An imposition of tough US and European sanctions in response to any Russian incursion in Ukraine could likely make Russia more inclined to ignore the fallout of violating US sanctions n its dealings with Iran.

By the same token, a failure of the talks between Iran and the United States, Russia, China, the European Union, France, Germany, and Britain to revive the accord that curbed the Islamic republic’s nuclear program would drive Iran closer to Russia and China in its effort to offset crippling US sanctions.

US and European officials have warned that time is running out on the possibility of reviving the agreement from which the United States under then-President Donald J. Trump withdrew in 2018.

The officials said Iran was weeks away from acquiring the know-how and capability to produce enough nuclear fuel for a bomb quickly. That, officials suggested, would mean that a new agreement would have to be negotiated, something Iran has rejected.

No doubt, that was in the back of the minds of Russian and Iranian leaders when they met last week during a visit to Moscow by Iran’s president, Ebrahim Raisi. It was the first meeting between the leaders of Russia and Iran in five years.

To be sure, the road to increased Russian trade, energy cooperation, and military sales would open with harsh newly imposed US sanctions against Russia even if restrictions on Iran would remain in place.

That does not mean that the road would be obstacle-free. Mr. Putin would still have to balance relations with Iran with Russia’s ties to Saudi Arabia and the United Arab Emirates. 

If anything, Russia’s balancing act, like that of China, has become more complicated without the Ukraine and Vienna variables as Iranian-backed Houthis expand the seven-year-long Yemen war with drone and missile strikes against targets in the UAE.

The Houthis struck as the Russian, Chinese and Iranian navies started their third joint exercises since 2019 in the northern Indian Ocean. The two events were not related.

“The purpose of this drill is to strengthen security and its foundations in the region, and to expand multilateral cooperation between the three countries to jointly support world peace, maritime security and create a maritime community with a common future,” Iranian Rear Admiral Mostafa Tajoldini told state tv.

US dithering over its commitments to security in the Gulf has persuaded Gulf states like Saudi Arabia and the UAE to hedge their bets and diversify the nature of their relations with major external powers.

However, a Russia and potentially a China that no longer are worried about the fallout of violating US sanctions against Iran could put Riyadh and Abu Dhabi on notice that the two US rivals may not be more reliable or committed to ensuring security in the Gulf. So far, neither Russia nor China have indicated an interest in stepping into US shoes.

This leaves Saudi Arabia and the UAE with few good choices if Russia feels that US sanctions are no longer an obstacle in its dealings with Iran.

Russia is believed to want the Vienna talks to succeed but at the same time has supported Iranian demands for guarantees that the United States would not walk away from a revived deal like it did in 2018.

Against the backdrop of talk about a proposed 20-year cooperation agreement between the two countries, Russia appears to want to negotiate a free trade agreement between Iran and the Eurasian Economic Union that groups Armenia, Belarus, Kazakhstan, and Kyrgyzstan, alongside Russia.

Iran has signed a similar 25-year cooperation agreement with China that largely remains a statement of intent at best rather than an action plan that is being implemented.

Like in the case of China, the draft agreement with Russia appears to have been an Iranian rather than a Russian initiative. It would demonstrate that Iran is less isolated than the United States would like it to be and that the impact of US sanctions can be softened.

“We have a document on bilateral strategic cooperation, which may determine our future relations for the next 20 years. At any rate, it can explain our prospects,” Mr. Raisi said as he went into his talks with Mr. Putin.

For now, Mr. Raisi’s discussions in Moscow appear to have produced more lofty prospects than concrete deals.

Media speculation that Russia would be willing to sell Iran up to US10 billion in arms, including Su-35 fighter jets and S-400 anti-missile defense systems, appear to have remained just that, speculation. Saudi Arabia and the UAE would view the sale to Iran of such weapons as particularly troublesome.

By the same token, Iranian officials, including Finance Minister Ehsan Khanduzi and Oil Minister Javad Owji, spoke of agreements signed during the Moscow visit that would revive a US$5 billion Russian credit line that has been in the pipeline for years and produce unspecified energy projects.

It’s unclear if these are new projects or ones that have been previously discussed and even agreed to, such as the one Lukoil stopped working on in 2018 after the US pulled out… Lukoil was concerned about being targeted by US sanctions,” said international affairs scholar Mark N. Katz.

Theoretically, the dynamics of the Ukraine crisis and the prospects of failed Vienna talks could mean that a long-term Russian Iranian cooperation agreement could get legs quicker than its Chinese Iranian counterpart.

Negotiating with a Russia heavily sanctioned by the United States and Europe in an escalated crisis in Ukraine could level the playing field as both parties, rather than just Iran, would be hampered by Western punitive measures.

Tehran-based Iranian scholar and political analyst Sadegh Zibakalam suggested that it was time for the regime to retire the 43-year-old Iranian revolution’s slogan of “neither East nor West.” The slogan is commemorated in a plaque at the Foreign Ministry.

Asserting that Iran has long not adhered to the motto, Mr. Zibakalam suggested that the plaque be removed and stored in the basement of a hardline Tehran newspaper. “It has not been used for a long time and should be taken down,” he tweeted.

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Unified Libya will come only via ballot box, ‘not the gun’-UNSC

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A boy runs in the ruins of the Bab al-Aziziyah compound in Tripoli, Libya. © UNICEF/Giovanni Diffidenti

Libya is at a “delicate and fragile juncture in its path to unity and stability”, the UN Political Affairs chief told the Security Council on Monday, urging the international community to remain united in supporting national elections postponed last month. 

In welcoming positive developments across three different tracks of intra-Libyan dialogue, Rosemary A. DiCarlo, Under-Secretary-General for Political and Peacebuilding Affairs, also recognized the challenges that must be overcome.  

“So many Libyans have told us, the way towards a stable and united Libya is through the ballot box, not the gun”, she said. “We must stand with them”. 

Postponed elections 

Growing polarization among political actors, and disputes over key aspects of the electoral process, led to the postponement of long anticipated elections on 24 December.  

The High National Commission for Elections (HNEC) cited shortcomings in the legal framework along with political and security concerns. To address this, the House of Representatives has established a Roadmap Committee to chart a new political path that defines an elections timetable and process. 

New Special Adviser 

Last month, Stephanie Williams was appointed Special Adviser on Libya, having served as acting Special Representative and head of the UN Support Mission, UNSMIL, last year.  

To date, she has undertaken wide-ranging consultations, including with members of the Government of National Unity (GNU), the High National Election Commission, the House of Representatives, and candidates for presidential and parliamentary elections.  

Oil-rich Libya has descended into multiple crises since the overthrow of former rule Muammar Gadaffi in 2011, which in recent years saw the country divided between rival administrations – a UN-recognized Government of National Accord (GNA) based in the capital Tripoli, and that of the self-styled Libyan National Army (LNA), led by General Khalifa Haftar.  

Ms. Williams has reiterated that the focus of the political process now, should remain on holding “free, fair, inclusive and credible national elections” in the shortest possible timeframe. 

“In all her meetings, the Special Adviser highlighted the 2.8 million Libyans who have registered to vote”, said Ms. DiCarlo, adding that she also called on everyone to respect the will of the Libyan people and to adhere to the timeline agreed to in the Libyan Political Dialogue Forum (LPDF) roadmap, which was endorsed by the Security Council

Welcomed developments 

The UN political affairs chief said ongoing dialogue among political, security and economic actors from across the country was key. 

“We have seen reports of consultations between the Speaker of the House of Representatives and the President of the High State Council, as well as among presidential candidates from western and eastern Libya”, she said.  

On the security track, there have been meetings among various armed groups, as well as the Chief of General Staff of the Western Military Forces under the GNU and the acting General Commander of the rival LNA, with the participation of military chiefs and heads of military departments from both sides.  

Turning to the economy, further steps have been taken to reunify the Central Bank of Libya.  

Moreover, renewed efforts continue to advance national reconciliation based on the principles of transitional justice.  

Security situation 

While the ceasefire has continued to hold, “political uncertainty in the run up to the elections has negatively impacted the overall security situation”, the political chief informed the Council, including in Tripoli. 

It has resulted in shifting alliances among armed groups affiliated with certain presidential candidates, she added. 

Similarly, unfulfilled demands made to the GNU by the Petroleum Facilities Guards (PFG) in western Libya resulted in the shutdown of oil production, causing the National Oil Corporation to declare in December, force majeure – a clause that removes liability for natural and unavoidable catastrophes. 

Following negotiations between the PFG and the GNU, Oil production was restored on 9 January. 

To implement the ceasefire agreement, last month military representatives from opposing sides, called the 5+5 Libyan Joint Military Commission (JMC), discussed with Turkish and Russian authorities, an Action Plan to gradually withdrawal mercenaries and foreign fighters from the country.     

At the same time, despite serious logistical and security challenges, the UN Support Mission in Libya (UNSMIL) continued its work to establish a ceasefire monitoring hub in Sirte, pending the GNU’s approval on accommodation and office facilities. 

Human rights concerns 

“The human rights situation in Libya remains very worrying”, said Ms. DiCarlo, noting “documented incidents of elections-related violence and attacks based on political affiliation”, which she described as obstacles toward a conducive environment for free, fair, peaceful and credible elections. 

“We are particularly concerned that women and men working to protect and promote women’s rights continued to be targeted by hate speech, defamation and incitement to violence”, she stated. “Some of the disturbing social media posts that posed a threat to the safety and security of these persons were removed after UNSMIL brought them to the attention of social media platforms”.  

Meanwhile, arbitrary detention by State and non-State actors continued across the country, with many detainees subjected to serious rights abuses. 

Migration management  

The situation of migrants and refugees is also highly concerning.  

“Large numbers of migrants and refugees attempting to cross the Mediterranean Sea and returned to Libya continue to be detained in inhumane and degrading conditions with restricted humanitarian assistance. Thousands are unaccounted for”, the UN official said.  

Ms. DiCarlo pointed out that hundreds of foreign nationals were expelled from Libya’s eastern and southern borders without due process, with some “placed in extremely vulnerable situations across remote stretches of the Sahara Desert without sufficient food, water, safety and medical care”. 

“The United Nations remains ready to work with Libyan authorities on a long-term national response to migration and refugee management in line with international law to include addressing human rights concerns”, she assured. 

Accountability  

To ensure political progress, Elham Saudi, Co-founder and Director of Lawyers for Justice in Libya, said that all who commit abuses must be held accountable, including mercenaries. 

She noted that without law, revenge would be the only winner.  

Ms. Saudi also maintained the importance of an enabling environment for all rights advocates, especially women, and expressed hopes for a human-rights based approach in how Libya is governed, going forward. 

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Embarking on Libya’s Noble Foray Into the Future

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On Saturday the 22nd of January, activists from across the civil society spectrum in Libya gathered over Zoom with one purpose in mind; publicly declaring their support for the 1951 Libyan Independence Constitution. Despite the political turmoil which has engulfed the country since the Arab Spring began in Tunisia in 2011, a strong civil society movement which supports a return to our historical constitution, has always existed in Libya. These supporters, who represent a significant number of Libyans from across the country, see the restoration of the 1951 constitution as the only way to shape their future.

Libya has been through an immeasurable amount of internationally led initiatives, all aimed at providing Libya with long term “solutions”. Only over the course of the past decade, one can count the UN-brokered Skhirat agreement in December of 2015, the 2017 Paris meeting, the 2018 Palermo conference alongside Mohammed bin Zayed’s Abu Dhabi gathering in February 2019. Followed by Putin and Erdogan’s joint call for a ceasefire in 2020, alongside the first (2020) and second (2021) Berlin conferences alongside UN-sponsored talks in Geneva, each and every one of these efforts amounted to nothing.

The main reason behind these, perhaps well-intentioned but failed attempts, was the simple fact that none of these efforts had any grounding in Libyan history or the support of the Libyan people. Reaching consensus in a society as heavily divided as that of Libya, is a significant challenge. However, placing our faith in our history will undoubtedly provide us with a solution that is closer to the hearts of citizens of our nation and which has the potential to assist in competing factions finally putting their differences aside.

This was the catalyst of Saturday’s meeting which sought to once and for all provide an authentically Libyan solution to the issues which have been plaguing the country for over a decade. The first of these is the preservation of our territorial integrity which has for too long been challenged by foreign actors. It is high time that a long term resolution for our country’s ills is found that ensures the exclusion of foreign elements from shaping the future of our great land.

The second issue the gathering sought to underscore was the need to build an inclusive future for all members of Libyan society. For far too long, our country has excluded citizens of certain political persuasions, cultural backgrounds or those who hold different opinions. Every Libyan deserves equal opportunities, protection of basic rights alongside access to justice. This has been impossible in a country which for so long has lacked a cohesive national identity.

These two issues are indeed intertwined with the third issue which the conference sought to highlight, namely, our demand to return to constitutional legitimacy under the leadership of our Crown Prince Mohammed El Hasan el Rida el Senussi. As the sole heir to the throne of King Idris, passed down through the late Crown Prince Hassan, Prince Mohammad is the leader our country has yearned for.

With leadership claims grounded in historical fact that cannot be upended by foreign or domestic elements, from an ideological standpoint, Prince Mohammad serves as an anchor, offsetting challenges to stability posed by foreign elements. This is strengthened by his position as  the scion of a family which has been in Libya for centuries and founded the Senoussia movement, briniging with it Islam, to the country. Furthermore, historical memories of the reign of King Idris, which saw religious tolerance, gender equality and security for its citizens, reflects the future which Libyan’s would like to see for themselves today.

Bringing together journalists, academics, human rights defenders and political activists, Saturday’s gathering was indeed revolutionary. It would have been unimaginable that such a gathering would even have taken place a mere decade ago. Representing not only themselves, but a wide range of segments of Libyan society, those attending over Zoom broadcasted a powerful message; a rejection of foreign attempts top shape the future of the country alongside a return to historical, constitutional, legitimacy under the leadership of the only man who can help Libya exit the current quagmire and begin its noble foray into the future.

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