International and Bilateral Issues

With an eye on the dependence of recession-hit economies of Greece, Italy and Spain on Iranian oil, Foreign Ministers of the EU countries on Monday decided to shift the ban on oil imports on Iran to July 1.
The decision by the 27-nation bloc not to impose an immediate energy import ban will allow the three EU countries — Greece, Italy and Spain, which consume 68 per cent of the bloc's total import of Iranian oil — to find alternative suppliers, analysts said.
- However, this may turn out to be an onerous exercise, as the jury is still out on the whether the world has sufficient excess capacity that can compensate for the elimination of Iranian oil from the world's energy market.
- In case Iran was prevented from exporting its oil, Saudi Arabia and the rest of the OPEC countries would manage to ramp up their existing daily production
Notwithstanding the capacity of Persian Gulf countries to produce more oil, Iran has threatened to block flows through the Strait of Hormuz through which the bulk of the region's oil passes. In case Iran obstructs the transit route through Hormuz, Saudi Arabia, Kuwait, the United Arab Emirates and Qatar, which use this route, would find it hard to ship most of their oil and gas to the international markets.
Oil exports, estimated at around $73 billion annually are Iran's economic lifeline, catering more than 50 per cent of the national budget and 80 per cent of the country's exports.

Islamist MPs took centre stage on Monday as Egypt's Parliament met for the first time since a popular uprising ousted Hosni Mubarak, while their supporters massed outside to cheer the historic event.
But the exact role of Parliament remains unclear, with power remaining in the hands of the generals who took power from the former President, Mr. Mubarak.
The military has come under intense criticism in recent months for rights abuses and stifling dissent.
Activists accuse the generals of seeking to maintain political control despite assurances by the army that it will cede power to civilian rule when a president is elected in June.

With both sides still poles apart on issues of services, procurement policy, duty cuts on automobiles and wines and spirits, India and the European Union (EU) are working hard to put in a place a “political agreement” during the India-EU Summit slated for February 10 as the free trade agreement (FTA) is unlikely to happen.
The good news is that we are in intense phase of negotiations. The bad news is that we are behind schedule for the India-EU FTA which it is not going to happen before or during the India-EU Summit in New Delhi next month

India and the European Union (EU) have joined hands for launching one of the biggest joint military operations, "Operation Atlanta", in the Indian Ocean against piracy activities.
EU has deployed four warships and supporting military ships of EU member-countries and is engaged with the Indian Navy in developing synergy in the region.
Interestingly, the India-EU summit is scheduled to be held in New Delhi on February 10 where security is going to be one of the key issues of discussion.
On EU sanctions against Iran, he said it was up to India how to deal with Tehran and EU had always respected India's position on the issue.
The Ambassador said the sanctions were to step up pressure on Iran because the reports coming from International Atomic Energy Agency about its nuclear programme were worrisome for EU and global security.