US lauds India’s efforts to reduce oil imports from Iran; hints at new waiver

Moneylife Digital Team 24 May 2013

India and some other countries such as China and Japan have cut their oil imports from Iran to secure waivers. This enables them to continue imports of oil to some quantity without facing a backlash from the US

India may soon get a fresh waiver from the sanctions imposed on doing business with Iran, the US indicated today while noting that India has made “tremendous progress” in reducing imports of oil from the Persian nation.

“I think India has made tremendous progress in reducing the level of its imports of Iranian oil. India has long been a leader in non-proliferation, stood side by side with all of us in the international community to say that Iran should not acquire a nuclear weapon,” US Under-Secretary of State for Political Affairs Wendy Sherman informed the media.

“That decision will be made shortly and all of the data is certainly pointing in a positive direction,” she said when asked whether the US could grant a fresh waiver to India to conduct business with Iran.

Her indication of a third waiver comes against the backdrop of India’s moves to reduce Iranian crude purchases to less than 13 million tonnes in the current financial year from 18.1 million tonnes last fiscal.

“We greatly appreciate all of the leadership that India has provided, including their imposition of sanctions,” Sherman said.

The sanctions imposed by the US on Iran in view of its controversial nuclear programme prohibit any country from engaging them in the field of commerce.

Comments

User

Steve

1 decade ago

Translation:

Uncle Sam:

Dear India, thank you for reverting to buying Petrol in dollars (otherwise we are so ****ed you know). These dollars had to head home to roost without your complicity in the petro-dollar scam.

India:

Dear Uncle Sam, we desperately need the toilet roll Ben Bernanke prints every month in order to prop up our unsustainable and bloated real estate sector. The feeling is mutual. We still haven't managed to grow a spine of our own.

Vinay Joshi

1 decade ago

MLDT,

Is commerce prohibited with Iran? Under which provisions?

India had to reduce oil imports coz of forex payments. Each worldwide entity was restricted to US$ 500mn dealings.
In addition insurance.

OK, so the Govt. supposedly pooling 2.5KCR to meet the insurance liability, FRACTION if a liability arises as EU re-insurers can't insure under sanctions. Liability in billions of dollars cant be paid by Indian insurers NEITHER THE GOVT. [it will have to pitch in.]

However India continues to import oil from Iran, new fix scenario, barter. Insurance grey area but latest tankers are deployed.

Now Iran has shown interest in importing automobiles & pharma products from India.
The payments will be settled in rupees.

Iran can draw from its rupee a/c with UCO Bank.

FY13 Indian exports to Iran were $3.36Bn against imports of $ 11.6Bn.

This is a fillip to the sagging auto sector & growing pharma as this perfectly suites the importing country. Pharma exports are approx 30% of now.

TVS may be the first to enter into a JV with Iran mfgr's.

With rupee payment it can beat imports from Japan & S.Korea in passenger cars & LCV's but long haul truck-trailers it will have to depend on their source.

Iranian port Bandar Abbas, now modernized Raja Sallai, transports FCL's across CIS.

Ajai Sahai, DG & CEO, FIEO has corroborated the development. Suranjan Gupta, Dir.EEPC has welcomed it. The delegation led by Com.Sec, S.R Rao has yielded results.

Iran may not depend on Indian imports but for some more time India has to depend on Iranian oil imports which is cheaper.

In UN Iran has always stood by India, India will extract all possible concessions on Indo-Iran trade from US. US has to oblige.

Regards,