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.
