India Unlikely To Resume Iran Oil Import
India is unlikely to resume Iranian crude oil purchases, which stopped when exemptions to US sanctions expired on May 2, four government officials have said. This is impacting energy security because India hasn’t been able to find an alternative source that matches the quality, quantity and lucrative commercial terms of Iranian crude, the officials added on condition of anonymity.
American sanctions against Tehran have also hit India’s plans to develop Iran’s Farzad-B gas block and indirectly impeded operations at Chabahar port even though it is exempted from the restrictions, they said.
New Delhi is expected to raise the economic losses due to US sanctions when secretary of state Mike Pompeo visits India on June 24, the officials said. The government is looking to Pompeo’s visit to gain clarity on a range of trade-related issues that have become irritants in India-US ties.
“It appears the resumption of oil imports from Iran won’t be possible now. That door seems to be closed,” one of the officials cited above said.
Iran’s foreign minister Javad Zarif had raised the issue of oil imports with former external affairs minister Sushma Swaraj during a visit to India on May 14 and she had said a decision would be made after the elections.
