Thursday 30 May 2019

India seeking resumption of oil import from Iran


India is planning to resume oil imports from Iran and the new government is going to hold talks with Iran in order to discuss ways of getting around US sanctions like paying in national currencies.
“The Modi government will immediately initiate talks with Iran to discuss steps that will allow it to resume oil imports,” India digital news portal ‘The Print’ has reported quoting government sources.
According to the sources, Iran’s Pasargad Bank and India’s Reserve Bank could be used to arrange the payments.
“Payments can be deposited in the Iranian bank and then Iranian authorities can decide how to utilize the money,” a senior government official who didn’t wish to be identified said.
“These talks have been held earlier too but got stalled due to elections. Talks will be revived soon and this will be one of the first focus areas of the government.” the official said.
India stopped oil imports from Iran after the six-month sanction waiver from the US ended on 2nd May 2019.
The US administration re-imposed sanctions on Iran after withdrawing from the Iran nuclear deal, which was signed in 2015, along with European countries. .
The US had instructed India and other countries to cut oil imports from Iran to "zero" by 4th November 2018 or face sanctions. However, Washington granted a six-month waiver to India and seven other countries to buy oil from Iran. The waivers expired in May this year.
India, which is the second biggest purchaser of Iranian oil after China, has since then restricted its monthly purchase to 15 million tons in a year or 300,000 barrels per day, down from 22.6 million tons or 452,000 barrels per day, bought in 2017-18 financial year.
India is world's third biggest oil consumer that meets more than 80% of its oil needs through imports.

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