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US: Contradictory reports on impact of anti-Iran sanctions on India

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US: Contradictory reports on impact of anti-Iran sanctions on India

Indian and Pakistani media quote same US official with different vesrions

The US administration has been given contradictory signals on the future course of implementing anti-Iran sanctions while dealing India. An Indian media outlet  reports that US has not taken any decision on sanctioning India for importing oil from Iran and investing in the Chabahar port, or buying the S-400 air defence missile system from Russia.

However, another report say that Washington is not offering waiver to any country from curbs on commercial deals with Iran so far, the restriction applies to India as well, which is a major importer of oil from Iran.

Elizabeth Roche, a well known writer associated with Livemint, quoting Alice G. Wells, the principal deputy assistant secretary of State for South and Central Asia, reported that US has not taken any decision on sanctioning India for importing Oil from Iran, investing in Chabahar seaport or buying S-400 air defence missile system from Russia.

Read More: India, US Sign Key Defense Agreement

Wells was in New Delhi last week as part of the delegation accompanying US Secretary of State Mike Pompeo for the India-US 2+2 dialogues. Livemint reports that Wells said that the dialogue was aimed at laying the foundation of the US-India relationship for the next decade.

The Indian media outlet reports that Wells said the sanctions that come into force on 4 November were designed to bring Tehran to book and non penalize India, which meets 83% of its crude oil requirements from outside. Of this, close to 25% comes from Iran.

US: Contradictory reports on impact of anti-Iran sanctions on IndiaThe report further said that Wells added that Washington’s aim was also not to penalize India for buying the missile defence the missile defence systems or sourcing spares from Russia, reports Livemint.

She said the sanctions on Iran that come into force on Nov 4 are not specific to India, which imports 25 per cent of its oil from Tehran. Iran is India’s third largest supplier of oil, after Iraq and Saudi Arabia. Between April 2017 and January 2018, Iran supplied 18.4 million tonnes of crude oil to India.

The report, however, incorporated Wells quote saying there was no “blanket waiver or country-specific waiver” from US sanctions on trading with or investing in Iran or buying arms from Russia.

Read More: Trump: India Called Us Wanting Trade Deal despite Tough Talks

On the contrary, Anwar Iqbal, Washington based journalist working for Dawn, quoted the same official from State Department, saying that Washington is not offering waiver to any country from curbs on commercial deals with Iran and so far, the restriction applies to India as well. Alice G. Wells reportedly said that the restrictions also apply to investments in Iran’s Chabahar port, a project built with India’s cooperation.

Alice G. Wells, Principal Deputy Assistant Secretary of State for South and Central Asia, said in a conference call with journalists on Monday that restrictions also apply to investments in Iran’s Chahbahar port, a project built with India’s cooperation.

Wells, who was briefing journalists on the two-plus-two talks between the US and India, held in New Delhi on Sep 6- said there was no “blanket waiver or country-specific waiver” from US sanctions on trading or investing in Iran.

Read More: Russia expect inking S-400 missile contract with India in 2018

Dawn reports further that while answering a question on whether US restrictions on trade with Iran were discussed at the US-India talks, she said that there was a discussion in general over the sanctions and on Trump administration’s goal to hold Iran accountable for its alleged ‘maligned behaviour.’

She further said that the two sides also talked about how US expects other countries to bring their oil imports from Iran “down to zero as quickly as possible” and on US efforts to ensure that the restrictions do not disrupt the market, she said. The US has assured the Indians that adequate supplies are readily available that could be easily substituted for Iranian oil, the US official added.

Wells said, “With respect to Chahbahar, we have heard the Indian government’s assertion for Chahbahar both as a means of route to Afghanistan, a means for delivering wheat supplies, for instance, and of opening-up trade to Central Asia.”

“The US officials were clear that we were still in process of reviewing the implementation of sanctions and that we were taking this under advisement. So it was an informational conversation between the parties,” she said.

The US secretary said that, in New Delhi, the Indian and American leaders committed themselves to resolving trade issues and reaching an agreement to promote bilateral trade. US was now India’s top market for exports and the US-Indian bilateral trade expanded by $12 billion in 2017 totalling to $126bn, whereas two-way investment expanded almost $57bn.

She also said that, so far, the US had not taken any decision on giving a waiver to India to purchase S-400 Triumf missile system from Russia. “We continue to have conversations with the Indian leadership. We are working to hold Russia accountable for its behaviour and Secretary of State Michael Pompeo said these sanctions are not intended to adversely impact countries like India. They are designed to impact Russia”, she said.

India and US had signed an agreement known as Communications, Compatibility, Security Agreement (Comcasa) at the end of the “2+2” talks between the external affairs minister Sushma Swaraj and defence minister Nirmala Sitharaman with their US counterparts Micheal Pompeo and James Mattis in New Delhi on September 6.

Russia is also facing US sanctions. President Donald Trump is expected to sign an executive order on Wednesday that would authorise sanctions against countries or foreigners who try to interfere in American elections. Investigations are continuing against the alleged Russian meddling in the US presidential elections held in 2016.

A report from Washington say that US intelligence agencies now believe that Russians would again try to interfere the mid-term polls this year and also 2020 presidential elections.

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Bangladesh president Shahabuddin accuses Yunus of conspiracy to unseat him

Bangladesh President Mohammed Shahabuddin has accused former chief adviser Muhammad Yunus of attempting to unseat him unconstitutionally and destabilise the country during the interim period.

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Days after the Tarique Rehman-led government assumed office in Bangladesh, President Mohammed Shahabuddin has levelled serious allegations against former chief adviser Muhammad Yunus, accusing him of attempting to remove him from office through unconstitutional means and destabilise Dhaka.

In an interview to a Bengali daily at Bangabhaban, the President claimed that during Yunus’s tenure, efforts were made to create a constitutional vacuum and disrupt the country’s stability.

Allegations of constitutional breach

Shahabuddin alleged that he was excluded from key state matters for nearly one and a half years. According to him, the former chief adviser did not maintain the constitutionally mandated communication with the President.

He claimed that Yunus undertook 14 to 15 foreign visits but did not brief him upon return or provide written updates, which he described as a constitutional obligation. The President also said he was not informed about major state decisions, including agreements signed with the United States ahead of elections.

Responding to questions about ordinances issued during the interim period, Shahabuddin noted that while some may have been necessary, there was little justification for promulgating as many as 133 ordinances.

‘Palace prisoner’ claim

The President further alleged that he was effectively reduced to a “palace prisoner” during the interim government. He said two of his proposed foreign visits — to Kosovo and Qatar — were blocked by the administration at the time.

He also referred to a purported attempt to replace him with a former chief justice through unconstitutional methods, claiming that the proposal was declined on constitutional grounds.

Recalling events of October 22, 2024, Shahabuddin described protests outside the presidential residence as a “terrifying night,” alleging that mobs were mobilised and attempts were made to storm the premises. He said the situation was brought under control following deployment of the military.

Support from armed forces and BNP

Shahabuddin stated that the chiefs of the three armed services assured him of their support, reiterating that he remained the supreme commander of the armed forces. He also credited the leadership of the Bangladesh Nationalist Party (BNP) for helping maintain constitutional continuity during the period of tension.

The allegations come amid political shifts in Bangladesh following the formation of the new government, adding a fresh dimension to the country’s evolving political landscape.

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India studying implications after US Supreme Court strikes down Trump’s global tariffs

India said it is studying the implications of a US Supreme Court ruling that struck down Donald Trump’s sweeping tariffs, even as a new 10% global duty has been announced under an alternate law.

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Donald Trump

India on Saturday said it is closely examining the implications of a recent ruling by the US Supreme Court that struck down former US President Donald Trump’s sweeping global tariffs.

In its initial response, the Commerce Ministry said it has taken note of both the court’s judgement and subsequent announcements made by the US administration.

“We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard,” the ministry said.

“Some steps have been announced by the US administration. We are studying all these developments for their implications,” it added.

What did the US Supreme Court rule?

On Friday, the conservative-majority court ruled 6–3 that a 1977 law relied upon by Trump to impose sudden tariffs on individual countries does not authorise the President to impose such sweeping duties.

The judgement marked a significant setback to Trump’s tariff policy, which had reshaped trade relations with several countries.

Responding to the ruling, Trump criticised members of the court, saying he was “ashamed” of certain justices and describing the verdict as disappointing.

Fresh tariffs under Section 122

Following the court’s decision, Trump announced new tariffs using Section 122 of the Trade Act of 1974. The provision allows the US President to impose temporary tariffs of up to 15 per cent for a maximum period of 150 days to address large and serious balance-of-payments deficits.

Under this route, a new 10 per cent global tariff has been imposed on imports into the United States. Trump said the revised order would be effective almost immediately.

US Treasury Secretary Scott Bessent, speaking at the Economic Club of Dallas, said the alternative mechanism would result in virtually unchanged tariff revenue in 2026.

Impact on India

Under the revised order, India faces a tariff rate of 10 per cent, reduced from the earlier 18 per cent under Trump’s broader tariff framework.

The new duty is scheduled to take effect from February 24 for a period of 150 days. Exemptions will continue for sectors subject to separate investigations, including pharmaceuticals, as well as goods entering the US under the US-Mexico-Canada Agreement framework.

India has not announced any retaliatory measures and has indicated that it is currently assessing the trade and economic implications of the US decisions.

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PM Modi meets Sri Lankan President Dissanayake at AI summit, reviews connectivity agenda

PM Modi and Sri Lankan President Anura Kumara Dissanayake reviewed connectivity, AI cooperation and regional stability during talks at the AI Impact Summit in New Delhi.

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PM Modi meet sri lanka president

Prime Minister Narendra Modi on Friday held talks with Sri Lankan President Anura Kumara Dissanayake on the sidelines of the AI Impact Summit in New Delhi, reviewing the progress of bilateral initiatives and reaffirming their commitment to deepening connectivity and development cooperation.

President Dissanayake was in India to attend the India-hosted AI Impact Summit. The visit marked his second trip to India since assuming office, following his State Visit in December 2024.

Focus on connectivity and development

According to the Ministry of External Affairs, the two leaders assessed developments stemming from recent high-level engagements, including Prime Minister Modi’s State Visit to Sri Lanka in April 2025. They emphasised fast-tracking cooperation across three key pillars — physical, digital and energy connectivity — which remain central to India-Sri Lanka relations.

Both sides reiterated that improved connectivity would not only enhance economic integration but also contribute to long-term stability and prosperity in the region.

AI collaboration and inclusive growth

Technology-driven development also featured prominently in the discussions. The leaders exchanged views on leveraging artificial intelligence for developmental purposes and improving service delivery.

They agreed that responsible deployment of AI can help advance inclusive growth, particularly in developing countries, and support public service systems.

India’s support during crisis

President Dissanayake expressed appreciation for India’s assistance following Cyclone Ditwah, which caused significant damage in Sri Lanka. India, acting as a First Responder, provided emergency relief supplies and supported search and rescue operations under ‘Operation Sagar Bandhu’.

The leaders also reviewed progress under India’s USD 450 million assistance package aimed at reconstruction and infrastructure restoration in Sri Lanka. The support is intended to aid long-term recovery and strengthen economic resilience.

Cultural ties and regional cooperation

Beyond economic and strategic matters, the meeting underscored the civilisational and cultural bonds between the two countries. The successful conclusion of the Exposition of the Holy Devnimori relics in Sri Lanka was welcomed as a step that further strengthened people-to-people connections.

Both leaders agreed to continue working closely to advance sustainable development, while contributing to peace and stability in the wider Indian Ocean Region.

The meeting highlighted India’s role as both a technology partner and a regional collaborator, as New Delhi and Colombo seek to build a resilient and forward-looking bilateral partnership.

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