Maldives signs China defense deal as India prepares exit

Chinese President Xi Jinping and Maldivian President Mohamed Muizzu at the Great Hall of the People in Beijing on January 10, 2024. (REUTERS)
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Updated 05 March 2024
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Maldives signs China defense deal as India prepares exit

  • Maldives pro-China President Mohamed Muizzu has ordered Indian military personnel out of the country
  • India is suspicious of China’s growing presence in the Indian Ocean and its influence in the Maldives

Malé, Maldives: The Maldives has signed a “military assistance” deal with China after ordering Indian troops deployed in the small but strategically-placed archipelago to leave, officials said Tuesday.

Some 89 Indian military personnel in the country will be gone by May 10 after having been previously ordered out by pro-China President Mohamed Muizzu, who came to power last year on an anti-Indian platform.

The Maldivian defense ministry said they signed an “agreement on China’s provision of military assistance” with Beijing late Monday, saying the agreement was “gratis,” or without payment or charge, but giving no further details.

The defense ministry said the deal was to foster “stronger bilateral ties,” in a post on social media platform X.

India is suspicious of China’s growing presence in the Indian Ocean and its influence in the Maldives, a chain of 1,192 tiny coral islands stretching around 800 kilometers (500 miles) across the equator, as well as in neighboring Sri Lanka.

Both South Asian island nations are strategically placed halfway along key east-west international shipping routes.

Relations between Male and New Delhi have chilled since Muizzu won elections in September.

New Delhi considers the Indian Ocean archipelago to be within its sphere of influence, but the Maldives has shifted into the orbit of China — its largest external creditor.

Muizzu, who visited Beijing in January where he signed a raft of infrastructure, energy, marine and agricultural deals, has previously denied seeking to redraw the regional balance by bringing in Chinese forces to replace Indian troops.

India last week said it was bolstering its naval forces on its “strategically important” Lakshadweep islands, about 130 kilometers (80 miles) north of the Maldives.

The Indian naval unit based on the island of Minicoy will boost “operational surveillance” of the area, the navy said.

Addressing a public rally north of the capital on Monday, Muizzu vowed there would be no Indian troops on Maldivian soil after May 10, when they are expected to complete a withdrawal.

The Indians had been deployed to operate three reconnaissance aircraft New Delhi had gifted Male to patrol its vast maritime boundary.

India is expected to replace the military personnel with civilian staff to operate the aircraft, and the Maldives defense ministry announced last month that Indian civilian crew had begun arriving in the atoll nation.

Last month, Male allowed a controversial Chinese research ship to enter its waters in a sign of the nation’s diplomatic reorientation toward Beijing and away from its traditional benefactor India.

China’s Xiang Yang Hong 3 arrived in Male after being refused permission to dock by Sri Lanka following objections from India, which has labeled it a spy ship.

China also gave 12 electric ambulances to the Maldives on Sunday, the health ministry said.


US lifts some Venezuela sanctions to ease oil sales

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US lifts some Venezuela sanctions to ease oil sales

  • Broad US license eases some sanctions on Venezuelan oil
  • Does not ease measures on production of Venezuelan crude
WASHINGTON: The administration of President Donald Trump lifted some sanctions on Venezuela’s oil industry on Thursday to make it easier for US companies to sell its crude oil, and said more restrictions on the country would be lifted soon.
The move by the Treasury’s Office of Foreign Assets Control authorizes US companies to buy, sell, transport, store and refine Venezuelan crude oil, but does not lift existing US sanctions on production.
A White House official said the measure “would help flow existing product” from Venezuela and that there will soon be more announcements on the easing of sanctions.
Trump has said the United States intends to control Venezuela’s oil sales and revenues indefinitely since US forces seized the country’s leader Nicolas Maduro in a raid on the capital Caracas on January ‌3.
He has said ‌he also wants US oil companies to eventually invest $100 billion dollars to ‌restore ⁠the OPEC-member nation’s production ‌to its historic peaks following years of underinvestment and mismanagement.
In the meantime, Washington and Caracas have already agreed an initial deal to sell 50 million barrels of Venezuelan crude oil, with European trading houses Vitol and Trafigura marketing the supply.
Treasury’s new authorization, known as a general license, opens up Venezuela oil trade to additional companies, provided they are from the United States.
It allows transactions involving the government of Venezuela and state oil company PDVSA related to “the lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan-origin oil, including the refining of such oil, by an established US entity.”
It specifically excludes ⁠firms and individuals from rivals like China, Iran, North Korea, Cuba and Russia.
During President Donald Trump’s first administration, Treasury designated Venezuela’s entire energy industry as subject ‌to US sanctions in 2019 after Maduro’s first re-election, which Washington did ‍not recognize.
The new license does not authorize any payment ‍terms that are not commercially reasonable, involve debt swaps or payments in gold, or are denominated in digital ‍currency.
America first
Oil producers Chevron, Repsol and ENI, refiner Reliance Industries, and some US oil service providers had sought licenses in recent weeks to expand output or exports from the OPEC member.
Expanding production in the country would require additional US authorizations.
Jeremy Paner, a lawyer at Hughes Hubbard & Reed and a former OFAC sanctions investigator, said the authorization is broad in the sense that it opens up many operations including refining, transportation and “lifting” of Venezuelan oil.
But he said the scope is narrow in that it only applies to US companies.
Kevin Book, an analyst at ClearView Energy ⁠Partners, said the authorization could provide clarity for US companies while maintaining the previous standard of case-by-case review for non-US entities.
“In short, it appears to offer ‘America First, Others Ask’ sanctions relief.”
The large number of individual requests to the US government had delayed progress on plans to expand exports and get investment moving quickly into Venezuela, two sources said this week.
The new OFAC license, meanwhile, came as lawmakers in Venezuela on Thursday approved a sweetened reform of the country’s main oil law that is expected to grant autonomy to private producers in joint ventures or under new contracts to operate their projects and commercialize the output.
It also formalizes an oil production-sharing model first introduced by Maduro and negotiated with little-known energy firms in recent years.
Francisco Monaldi, director of the Latin American Energy Program at Rice University’s Baker Institute in Houston, said he wondered if the exclusion of Russian and Chinese entities would make it hard for PDVSA to operate or market oil from those ventures. Ventures ‌with those countries produce about 22 percent of the oil, he said.
“If they cannot export the oil coming from these ventures, that’s a big problem.”