NEW DELHI – The Narendra Modi-led Indian government to cut oil imports fromIran to half after the US sanctions.
The step is being taken to bag the support of the United States in a bid tosecure a waiver to continue with shipments, it has emerged.
According to sources privy to the developments, officials from the U.S. haddiscussed the issue of a conditional waiver on sanctions in talks lastmonth in New Delhi.
Requesting anonymity, the sources disclosed that India has expressed itsinability to scrap oil imports from Iran completely as its supplies arebeing offered at competitive rates.
New Delhi expects a response as early as next month when talks resume.
President Donald Trump’s administration was compelled to review its plan tochoke off all of Iran’s oil exports after countries including China andIndia expressed their inability to halt shipments. The Asian countriestogether comprise about half of Iran’s oil exports, forcing the US bigwigsto pull back on their aggressive plans.
Washington is now said to have sought a 50 percent cut in exports when itreimposes energy sanctions in early November and in this regard, NewDelhi expects a response as early as next month when talks resume.
Though Trump, who pulled out of the Iran Nuclear Deal a couple of monthsago, succeeded in persuading allies Japan and South Korea the situation istough when it comes to European Union nations.
The blows in failing to convince allies are pushing backs the U.S. toconsider waivers to countries on a case-by-case basis. Washington feelsthat even a major cut in exports would inflict a damage on Tehran.
India has a special bond with Donald Trump, but with Iran as well, in thebackdrop of Chahbahar Port. It continued with Iranian imports even afterTrump’s withdrawal of 2015 nuclear deal.
Indian Oil Corp., the biggest refiner and a top customer of Iran, hasbooked cargoes for September, its Chairman Sanjiv Singh said on Monday.
India is estimated to have imported 22.6 million tons of Iranian oil duringthe 12 months through March 31 as per the figures laid out by Bloomberg.Refiners in India were quick to increase imports from the Persian Gulfstate after the previous round of sanctions were lifted in 2015.
New Delhi is not in a comfortable position to cut imports from Iran as thearrangement will cost it savings on shipping and the longest creditrepayment period offered by any of its suppliers.
India, the world’s third-biggest oil consumer, meets more than 80 percentof its requirements through imports and Iran is its third-largest supplierafter Iraq and Saudi Arabia.