New Delhi: Iran’s plan to establish a safe corridor in the Strait of Hormuz has been met with reluctance from China, even as the country along with “Asia’s major economies facing serious issues amid disruptions in shipping traffic,” a new report has said.
The report from Turkey-based Anadolu Agency said Chinese vessels largely avoided the safe corridor provided by Tehran for 10 days.
Tehran announced on March 13 that it would monitor ship movements in a corridor between the Larak and Kish islands in Iranian territorial waters.
The report cited Chinese shipowners reporting they were asked to pay passage fees or carry cargo on Iran’s behalf during inspections by IRGC officials in the corridor.
A Chinese vessel transited through the corridor between Larak and Kish islands for the first time on March 23, after a 10-day wait, the report claimed.
“On March 16, a very large crude carrier from Chinese shipper Cosco’s fleet avoided entering the Persian Gulf and instead transited through the Bab el-Mandeb Strait, 1,000 kilometers away, into the Red Sea and docked in Yanbu, Saudi Arabia,” it added.
Special oil trade relationship between China and Iran using Chinese Yuan led to the claims that Chinese vessels were allegedly granted preferential treatment and passage via the strait, but the report claimed international shipping records show data to the contrary.
“China buys Iranian oil below market prices, mostly via special deals known as petroyuan agreements. China sells goods to Iran in exchange for the oil’s value in Chinese yuan, and although Tehran occasionally complains about the disadvantages of this type of trade, it still makes up a large source of support for the country under sanctions,” it explained the special relation.
Energy supply shock will send shockwaves through the global energy market and is not expected to be resolved in the short term, it predicted.
Asia’s major economies are facing serious issues amid disruptions in shipping traffic, with China and India sourcing around half of their imported oil and natural gas from the Gulf.
China sources 45 per cent of its oil from Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait, while importing LNG from the UAE and Qatar, making up 30 per cent of the country’s total imports.
“China and leading Asian economies are facing risks due to their heavy reliance on energy imports from the Persian Gulf region amid the effective closure of the Strait of Hormuz,” the report said.
(IANS)
