India to pay in rupees for Iranian oil

Cornelia Mascio
Settembre 23, 2018

Despite opposition by Europe, China and India, the USA decision has caused a significant slowdown in the Iranian economy after years of marked growth. The EU has promised to protect its business interests against the impact of USA sanctions against Iran.

Iran's key customers-no.1 China and no.2 India-are not expected to cut off their imports of Iranian oil, although India may reduce some of its Iranian intake as it tries to maneuver between cheap Iranian crude and USA pressure to curtail imports.

Going forward, there are two major factors for estimating how low Iranian oil exports could sink.

Tens of millions of India's citizens are Shiite Muslims.

US President Donald Trump had in May withdrawn from the 2015 nuclear accord with Iran, re-imposing economic sanctions against the Persian Gulf nation.

"It is quite complicated. reinsurers are quite apprehensive about extending cover for Chennai Petroleum", said one of the sources, who asked not to be identified because of the sensitivity of the issue.

The port facilitates access to Afghanistan by bypassing Pakistan and is also a vital link in the International North-South Transport Corridor.

"We, of course, will continue to work with the United States and other stakeholders to ensure our energy security and also our national interests", Kumar said.

"We are in touch with all stakeholders in the matter", Kumar said.

"We have told the Indians consistently, as we have told every nation, that on November 4th the sanctions with respect to Iranian crude oil will be enforced, and that we will consider waivers where appropriate, but that it is our expectation that the purchases of Iranian crude oil will go to zero from every country, or sanctions will be imposed", Secretary Pompeo said, noting that many countries would need "a little bit of time to unwind".

Oil refiners such as state-owned Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL) could use UCO Bank or IDBI Bank to route oil payments to Iran, the official added.

In September, the trend of reduced Iranian oil exports has continued, and analysts expect further cuts from some of Iran's oil customers.

This has forced the refiner to cancel a scheduled loading of 1 million barrels in October, they said.

Besides blocking of banking channels from November, the absence of payment mechanism may pose a challenge to the transportation of the oil as Iranian crude is bought on a CIF basis and shipped on Iranian tankers.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE