Sunday, 22 July, 2018

India's Oil Imports from Iran Fall by 15.9% in June

German Chancellor Angela Merkel shakes hands with Chinese Premier Li Keqiang after a joint press conference at the Chancellery in Berlin Iran promises to sell as much oil as it can in wake of US sanctions
Russell Knight | 11 July, 2018, 19:30

This reaction from Iran comes as a response to the U.S. policy which called out countries to start reducing the import of oil from Iran and bring it to zero by 4 November.

Rahaghi had also criticised India for not fulfilling its promise of making investments in the expansion of the strategically located Chabahar port On Chabahar, the embassy said Iran has always welcomed Indian initiatives in the project.

While the United States wants all countries, India included, to reduce oil imports from Iran to zero, Washington's ambassador to the UN Nikki Haley had said a fortnight ago that the Americans were open to working with New Delhi on Chabahar in view of its strategic importance, particularly with regard to Afghanistan. The deputy ambassador of Iran to India, Massoud Rezvanian Rahaghi said, speaking at an event in new Delhi, that India will lose its "special privileges" if it suspends Iranian oil purchases in November.

Besides developing Chabahar, India is also invested in the construction and expansion of a transit corridor that extends into Central Asia and connects land-locked Afghanistan to the port, reducing Kabul's dependence on Pakistan to access sea lanes.

Pompeo said that a focus remains on denying "Iran the financial capacity to continue this bad behaviour".

. "... India is trying to make Chabahar port in Iran operational by 2019... opening up of the Chabahar port would make the CIS countries more accessible", the shipping minister said.

The senior Iranian diplomat said it was important to work together to immunise the relationship between the two countries through adoption of necessary instruments and mechanisms. "This requires a strong political determination", he said, adding both sides should set up banking relations, open new transaction routes and help each other's markets and business communities. Pompeo said that the US would consider waivers for certain countries that wish to import Iranian oil, but added that Washington is determined to take a hard line on Tehran.

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In April to June 2018, the first quarter of this fiscal year, India's oil imports from Iran rose by about 24 percent from the previous quarter to about 647,000 bpd, the data showed.

Jahangiri said Iran's foreign ministry and the central bank have taken measures to facilitate Iran's banking operations despite the United States sanctions.

Shipping to Iran and ports in the country are also coming under the USA sanctions.

Supply to the US market has also been squeezed by the loss of some Canadian oil production.

"In such a selfish approach, the U.S. is targeting the whole world - either to be its friends and allies or be rival".

In May, President Donald Trump announced that the U.S. was withdrawing from the Iran nuclear deal signed by the Obama administration in 2015, under which Tehran had agreed to limit its sensitive nuclear activities and allow worldwide inspectors in return for lifting of crippling economic sanctions.

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