US threats over buying Iranian oil puts India in dilemma

Iranian President Hassan Rouhani (C) holds hands with Indian President Ram Nath Kovind (L) and Indian Prime Minister Narendra Modi (R) during a ceremonial reception at the Indian Presidential palace in New Delhi. (File Photo / AFP)
Updated 15 September 2018
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US threats over buying Iranian oil puts India in dilemma

DELHI: India is facing a dilemma over how to respond to the US threat of punitive measures against countries that do not comply with sanctions on Iran, experts say.
On Thursday, the US assistant secretary of state for economic and business affairs, Manisha Singh, warned of the “strongest actions possible on people who will not assist us in complying with this new range of sanctions that we are putting back into place.”
She was asked in Congress: “If any of the major buyers of Iranian crude, which is China, India… refuse to sharply cut their purchases, are we really prepared to cut their banks off from the global banking system?” Singh replied: “We are prepared to take the most serious actions possible on Iran.”
A spokesman for India’s ruling Bharatiya Janata Party (BJP), Sudesh Verma, told Arab News: “The party still has to make up its mind on the issue.”
Harsh V. Pant, head of the Strategic Affairs Programme at the Observer Research Foundation, a New Delhi-based think tank, told Arab News: “India’s official position remains that it doesn’t honor unilateral sanctions, but the reality on the ground is different.”
He said: “India and Iran are trying to see how to bypass the sanctions, but India will find it tough to salvage the relationship with Iran considering the fact that the Trump administration is acting tough. There’s great pressure on India to fall in line.”
He added: “India has already reduced its oil imports from Iran. New Delhi is cognizant of the fact that the US financial system is important for India.”
Ashok Sajjanhar, a former diplomat who served in the Indian Embassy in Iran, told Arab News: “We’re dealing with Washington in a very nimble-footed manner.”
He said: “New Delhi will have to play a very deft balancing act. It might have to taper down its imports, but it won’t go to zero.”
Iran is India’s third-largest oil supplier after Saudi Arabia and Iraq.


UK core pay growth strongest in nearly 11 years, but jobs growth slows

Data showed the unemployment rate remained at 3.8 percent as expected. (Shutterstock)
Updated 16 July 2019
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UK core pay growth strongest in nearly 11 years, but jobs growth slows

  • Core earnings have increased by 3.6 percent annually, beating the median forecast of 3.5 percent
  • The unemployment rate fell by 51,000 to just under 1.3 million

LONDON: British wages, excluding bonuses, rose at their fastest pace in more than a decade in the three months to May, official data showed, but there were some signs that the labor market might be weakening. Core earnings rose by an annual 3.6 percent, beating the median forecast of 3.5 percent in a Reuters poll of economists. Including bonuses, pay growth also picked up to 3.4 percent from 3.2 percent, stronger than the 3.1 percent forecast in the poll. Britain’s labor market has been a silver lining for the economy since the Brexit vote in June 2016, something many economists attribute to employers preferring to hire workers that they can later lay off over making longer-term commitments to investment. The pick-up in pay has been noted by the Bank of England which says it might need to raise interest rates in response, assuming Britain can avoid a no-deal Brexit. Tuesday’s data showed the unemployment rate remained at 3.8 percent as expected, its joint-lowest since the three months to January 1975. The number of people out of work fell by 51,000 to just under 1.3 million. But the growth in employment slowed to 28,000, the weakest increase since the three months to August last year and vacancies fell to their lowest level in more than a year. Some recent surveys of companies have suggested employers are turning more cautious about hiring as Britain approaches its new Brexit deadline of Oct. 31. Both the contenders to be prime minister say they would leave the EU without a transition deal if necessary. A survey published last week showed that companies were more worried about Brexit than at any time since the decision to leave the European Union and they planned to reduce investment and hiring. “The labor market continues to be strong,” ONS statistician Matt Hughes said. “Regular pay is growing at its fastest rate for nearly 11 years in cash terms and its quickest for over three years after taking account of inflation.” The BoE said in May it expected wage growth of 3 percent at the end of this year.