News / Asia

India Explores Ways to Buy Iranian Oil

Man fills up with diesel at a fuel station in Kolkata (2011 File)
Man fills up with diesel at a fuel station in Kolkata (2011 File)

India is exploring ways to pay for Iranian oil imports in the face of tightening sanctions imposed by the United States and the European Union. Asian countries have been under pressure to cut oil imports from Tehran, but India says it will only follow sanctions
imposed by the United Nations and not those by individual countries or blocs.

Iranian oil now comprises about 12 percent of the India's supply.

Oil Minister Jaipal Reddy says New Delhi wants to buy as much oil as it can from Iran because the terms are very favorable. He says Iran’s attitude to India has been what he called “accommodative” despite New Delhi's repeated hurdles in paying for the crude.

“We have made our best efforts to make the payments," said Reddy, speaking on the sidelines of an energy conference in New Delhi on Monday. "In spite of difficulties the government of Iran has put up with us. It will be our effort in future to tap the Iran source fully.”

An Indian delegation visited Tehran last week to discuss how the two countries can continue their oil trade now worth about $12 billion annually.

During the past year India has struggled to pay Iran for the oil because of financial sanctions imposed by the United States.

Since last July, New Delhi has routed payments through a Turkish bank. But that method could be vulnerable to tighter U.S. sanctions that ban transactions with Iran's Central Bank and a ban on oil imports by the European Union.

New Delhi is likely to pay for part of the Iranian crude in rupees, with Tehran using the Indian currency to purchase imports from India. But Iran’s imports add up to less than one quarter of the money India would have to pay for the crude.

Other options are being explored. These include paying in yen because India has a currency swap arrangement with Japan. New Delhi could also step up investments in non-strategic infrastructure projects in Iran in return for the oil supplies.

An energy analyst in India, V. Raghuraman, says India is considering increasing its purchases from other oil suppliers, like Saudi Arabia. But he says New Delhi does not want to jeopardize its long standing relationship with Iran.

“The government has been thinking of diversifying the supplies and to see how we can reduce our dependence on Iran oil, but at the same time we have traditional relationships with Iran which goes beyond oil, so to that extent government cannot cut off its entire dependence on Iran.”

Oil Minister Reddy has reiterated that India will only follow sanctions imposed by the United Nations and not those by individual countries. New Delhi says it is complying with U.N. sanctions by banning all trade in goods and technology that could help Tehran’s
nuclear weapons program.

Asian countries such as China, India, Japan and South Korea are among the biggest customers for Iran’s oil.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month 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.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
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.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid