India to continue its oil imports from Iran despite the US sanctions

Tabnak – Despite having a close partnership with the United States, India has made it clear that it’s not going to fully abide by the American policy of maximizing pressures on Iran. In this vein, the Indian government has asked the US for a renewed sanctions waiver to continue purchasing oil from Iran.

In this vein, India has said that it plans to maintain Iran oil import at the current level and is negotiating with the US to secure an extended exemption from US sanctions targeting Iran’s energy sector.

An exclusive Reuters report quoted two Indian sources with knowledge of the matter as saying on Thursday that New Delhi seeks to maintain its crude shipments from Iran at its current level of about 300,000 barrels per day (bpd). The sources added that India is trying to ensure renewal of the current waiver, which is set to expire this May.

One of the Indian sources said talks with Washington on extending the waiver had slowed due to the US government shutdown that extended through January. “Talks have now resumed and India wants to get clarity before general elections scheduled in May,” Reuters cited the source as saying. Iran is currently India's seventh biggest oil supplier.

The US left a multilateral nuclear agreement with Iran, officially known as the Joint Comprehensive Plan of Action (JCPOA), last May and re-imposed nuclear-related sanctions that had been lifted under the deal, including those on Iran's oil sales.

Washington, however, granted waivers to Iran's major customers, namely China, India, Japan, South Korea, Taiwan, Turkey, Italy, and Greece, on condition that they cut their crude imports from Iran. Washington is applying pressure on the major recipients of Iran’s crude to reduce the country’s oil exports to “zero” through the bans.

The new report comes as India and Iran are continuing their high-level contacts, discussing a variety of issues of mutual interest. In the latest case of these contacts, Iranian Foreign Minister Mohammad Javad Zarif and his Indian counterpart Sushma Swaraj exchanged views about a range of issues, including the latest developments in the region.

During a phone conversation on Thursday afternoon, the two sides conferred on the bilateral ties as well as regional issues. Zarif also underlined the need for peaceful settlement of differences in the region through dialogue.

In early January, the top Iranian diplomat headed a business and diplomatic delegation to India. In his three-day visit, he held meetings with top Indian officials, including Prime Minister Narendra Modi, and delivered a speech to a multilateral conference dubbed the Raisina Dialogue.