On 31 st October 2007, governor of the US state of Minnesota, Tim Pawlenty, announced that the Essar Group has backed away from development of a new oil refinery in Bandar Abbas, Iran. The joint venture between Essar and Iran's state oil refining firm, National Iranian Oil Refining Distribution Company, estimated to cost $8-$10 billion had been announced only a week ago, on 24th October 2007, and would have been the first foreign-invested downstream project in sanctions-hit Iran.

Essar, an Indian multinational with interests from telecom to construction recently bought a Minnesota steel company, and was looking forward to developing this plant. Essar at the same time had various plans for investment in Iran, including a joint venture to build a 1.5 million tonnes a year steel plant, as well as develop the giant Azadegan field, Iran's biggest oilfield with in-place reserves of 26 billion barrels. Essar has also submitted a bid for three exploration blocks in Iran in the most recent auction round.

Essar’s move to dissociate itself from the proposed refinery project in Iran came after the Minnesota governor Pawlenty specially flew to India to discuss Essar’s Iran work and “potential conflicts with US law”. He also announced a state investment package of $60 million in infrastructure investments to help develop the new plant on the Mesabi iron range in northeast Minnesota.

This was the latest in a series of concerted moves by western imperialist powers led by the US to isolate Iran and strangle its economy, thereby forcing it to toe their line.

Recent months have seen an escalation of threats and sanctions being used against third countries and agencies having economic or political dealings with Iran. This policy has been quite successful with western corporations. As a result, Iran's access to financing of mega-projects have been hindered by tighter credit from European banks and Western energy firms' reluctance to do business with it. Iran has however found some support from companies in Asia where energy demands are on the rise, with companies eager to participate in its refinery and energy infrastructure expansion plans. Hence the increased thrust of the Western imperialists in putting pressure on such companies.

TAP pipeline vs IPI pipeline

On November 1, 2007, it was announced that India will be formally invited to join as the fourth stakeholder in Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project during talks likely to be held here in December. The proposed 1,680-km pipeline will run from the Daulatabad gas fields in Turkmenistan to Afghanistan, alongside the highway from Herat to Kandahar, and then via Quetta to Multan in Pakistan. The TAP project is scheduled to be completed by 2011-12. India has been invited to participate in this project specifically as part of the US pressure on India to abandon the proposed Iran-Pakistan-India (IPI) gas pipeline project.

The Indian government has been already delaying its participation in the IPI gas pipeline project for several months now, citing reasons such as the proposed pricing of the gas and transit fees. The real reason has been the US pressure on the Indian government to kill the IPI gas pipeline project..

IAEA chief derided for telling the truth

On November 2, 2007, officials from the five permanent members of the UN Security Council and Germany met in London and agreed to draft a third resolution for sanctions against Iran. Earlier, the US and France dismissed a statement by the International Atomic Energy Agency (IAEA) head Mohammed El Baradei that there is no evidence of Iran building a bomb! El Baradei is to report to the IAEA's board in mid-November on how much information Iran has provided regarding its nuclear program, but even without waiting for this report, the leaders of the western imperialists have derided him. In other words, the IAEA chief is expected to prepare a report in the manner which suits them or face such flak.

This activity is only too reminiscent of the manner in which the Anglo – American imperialists refused to wait for the report of the UN agencies on whether the Saddam Hussain regime in Iraq possessed “weapons of mass destruction” (WMDs). Though no evidence of the WMDs could ever be found by the inspectors, the Anglo – American imperialists kept insisting in 2002 – 2003 that Saddam Hussein’s regime was an “imminent threat to the civilised world” and hence must go, after an invasion and war, if need be.

Germany and France join the US

The German chancellorship under Angela Merkel has been noted for its efforts to build close ties with the US imperialists. Germany has been in the forefront of the forces demanding sanctions against Iran for allegedly pursing a nuclear weapons program. If Iran indeed pursued such a program, it would be its sovereign right to do so. It is also the sovereign right of Iran to ensure its energy needs by developing nuclear energy capacity.

Earlier French foreign minister
Mr. Kouchner declared in an interview to radio and TV that, "we have to prepare for the worst, and the worst is war"! He also declared that a number of large French companies had been asked not to tender for business in Iran. France under its new President Nicolas Sarkozy, is dovetailing its West Asia policy with that of the US. Officials of the government of France, known for their earlier opposition to the Anglo-American plans to invade and occupy Iraq in 2003, are now joining, as is the government of Germany, in the US imperialist-led chorus against Iran.

Iran is facing threats and sanctions because its people and government refuse to bow to the dictate of the US and its imperialist allies. The US imperialists are preparing the grounds step by step for aggression against Iran. This must be opposed by justice and peace-loving people all over the world.

The Indian working class and people expresses its full support to the Iranian people and their government in defending their sovereignty in the face of imperialist pressure and blackmail.