Iran sanctions: India in touch with all stakeholders

Gladys Abbott
September 23, 2018

Iran's oil exports started to fall noticeably in August as key customers in Asia began to curtail oil purchases to either comply with the U.S. efforts to bring Iranian exports to zero, or to win waivers with the U.S. Administration.

The sanctions would come into full force on November 4 and the USA expects all countries, including India, to bring down their import of Iranian oil to zero by then.

A man holds the flags of India and the US while people take part in the 35th India Day Parade in New York August 16, 2015.

Given the above issue, South Korean companies did not cut their trade and business cooperation with the Iranian economic enterprises in sanctions period, the ambassador reiterated.

Japanese imports of Iranian oil in October will come at a time when the government is still pressing the U.S. to allow Japan to continue importing Iranian oil, while leaving refiners to make their own decisions over their imports as USA sanctions loom on the horizon. "And if they do, we will get it right", Pompeo told Fox News in an interview.

Previous proposals by Europe could not provide enough guarantees for the sale of Iran's oil to Europe or to help Iran access to the global financial market, said Qasemi.

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The US' sanctions on the import of Iranian petroleum products will be effective from November 4.

UCO Bank and IDBI Bank have been identified to route the payment as the two have no exposure to the USA financial system.

India had planned to import about 25 million tonnes of crude oil from Iran in the current fiscal, up from 22.6 million tonnes imported in 2017-18.

During the first round of sanctions when European Union joined the U.S. in imposing financial restrictions, India initially used a Turkish bank to pay Iran for the oil it bought but beginning February 2013 paid almost half of the oil import bill in rupees while keeping the remainder pending opening of payment routes.

India has asked Afghanistan-close ally of the United States in the region - to take up the case and apprise Washington the significance of strategic relationship between India and Iran. The remaining 45% payment was paid in rupees in accounts Iranian oil companies had with the UCO Bank. Reportedly, Iran is the third largest producer of among OPEC (Organization of the Petroleum Exporting Countries).

The rupee-rial arrangement was used to buy oil from Iran before sanctions were lifted against it three years ago.

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