News / Asia

India Considers More Oil Imports From Iran

A worker walks atop a tanker wagon to check the freight level at an oil terminal on the outskirts of Kolkata, Nov. 27, 2013.
A worker walks atop a tanker wagon to check the freight level at an oil terminal on the outskirts of Kolkata, Nov. 27, 2013.
Anjana Pasricha
India hopes to increase crude oil imports from Iran after a deal with six Western countries gave Tehran limited respite from sanctions. The deal comes as a relief to India which maintains friendly relations with Iran and wants to boost trade and other links with Tehran.

Days after Iran reached a truce with world powers, India’s Petroleum Secretary, Vivek Rae said that India will send a delegation to Iran to discuss the mechanism for oil payments.

With Iran virtually shut out of the global banking system, India had set up a barter system with the sanctions-hit country, under which it partly paid for its crude imports in rupees. The system was not efficient.

Oil refiners said they can now start transferring the money to Iran in euros. India owes Iran more than $ 5 billion.

Petroleum Secretary Rae said Wednesday that depending on the easing of sanctions, India also may look at higher Iranian crude imports in the next fiscal year which begins in April.

In the last two years, India, which is Iran’s second biggest customer for crude oil, had slashed oil imports under pressure from the United States.

Energy analyst at Singapore-based Facts Global Energy, Praveen Kumar, said that refiners will no longer be under pressure to reduce supplies from Iran. “There is that 20 percent limit which they have year on year cut which they were meeting. I don’t think that will be enforced, I don’t think they will want them to continue cutting back on the crude from here on, because Indian refiners are actually dependent on this crude,” he explained.    

India’s oil imports had fallen below the level permitted by sanctions as it became difficult to ship in the oil due to problems in extending insurance cover to tankers transporting crude from Iran. Refiners now hope to overcome this hurdle.

Indian businesses are also optimistic. Over the last year, India had tried to boost exports such as rice, automobile parts and pharmaceuticals to Iran to use up the rupees lying in Indian banks. Businessmen were looking at making investments in the country.

The head of the Federation of Indian Export Organizations, Rafique Ahmed, said this will be facilitated as banking channels open up. “Long term projects can be taken up which is difficult through rupee mechanism," he noted. "Two big cement projects are being discussed. That can be possible now, going from trade to investment.”  

However, energy analysts such as Praveen Kumar warn there also could be some disadvantages for countries like India, to whom Iran was extending benefits for continuing to buy oil. “They [Iran] were working out some kind of sweetheart deals with the people who were currently continuing to buy off them, and all that will go out of the window if the import club starts to expand from here on,” Kumar stated. 

Although U.S. led sanctions had restricted India’s economic relations with Tehran, their political ties remained unaffected. Political analysts say further easing sanctions would open up new avenues for cooperation between the two countries.

You May Like

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Religion Aside, Christmas Gains Popularity in Communist Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid