NEW DELHI – After refusing to budge before US sanctions threat overpurchase of Russian missile defence system, India gives yet another blow tothe United States.
India has refused to follow US sanctions on Iran and decided to continueoil imports from Iran.
India is allowing state refiners to import Iranian oil with Tehranarranging tankers and insurance after firms including the country’s topshipper Shipping Corp of India (SCI) halted voyages to Iran due to USsanctions, sources said.
New Delhi’s attempt to keep Iranian oil flowing mirrors a step by China,where buyers are shifting nearly all their Iranian oil imports to vesselsowned by National Iranian Tanker Co (NITC).
The moves by the two top buyers of Iranian crude indicate that the IslamicRepublic may not be fully cut off from global oil markets from Novemberwhen US sanctions against Tehran’s petroleum sector are due to start.
President Donald Trump ordered the reimposition of economic curbs afterwithdrawing the United States from a 2015 nuclear deal between Iran and sixworld powers. No one trading with Iran will do business with America, hesaid.
“We have the same situation (as most Western shippers) because there is nocover, so we cannot go (to Iran),” an SCI official told Reuters.
New Delhi turned to the NITC fleet after most insurers and reinsurers hadbegun winding down services for Iran, wanting to avoid falling foul of thesanctions given their large exposure to the United States.
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SCI had a contract until August to import Iranian oil for MangaloreRefinery and Petrochemicals Ltd (MRPL), two sources familiar with thematter said.
Eurotankers, which had a deal with MRPL to import two Iranian oil cargoesevery month, has also said it cannot undertake Iranian voyages fromSeptember, the sources said.
The sources spoke on condition of anonymity as they were not allowed totalk to the media about commercial deals.
“The shipping ministry has given refiners permission to buy Iranian oil ona CIF (cost, insurance and freight) basis,” a government source said.
Under a CIF arrangement, Iran would provide shipping and insurance,enabling Indian refiners to continue purchases of the country’s oil despitethe non-availability of cover from Western insurers due to the restrictionsimposed by Washington.
