New Delhi: India hopes to clinch a waiver from U.S. sanctions on Iran before they take effect on Nov. 4, on the grounds that it had significantly cut Iranian oil imports before the deadline, officials said on Monday, reports Reuters.
The United States is imposing new sanctions on Iran’s oil industry after Washington withdrew from a nuclear deal between Tehran and other global powers.
Washington said on Friday it was considering waivers for nations that were reducing imports of Iranian oil of which India is one.
The announcement, the first indication Washington was considering such waivers, followed a Reuters report that India planned to lift some Iranian oil in November although it has been cutting back on Iranian imports in recent months.
Indian Oil Minister Dharmendra Pradhan told reporters that New Delhi was discussing the issue of a waiver “with all the authorities concerned”.
“We have to fulfill all our domestic requirements,” Pradhan said, confirming the plan to buy some Iranian crude after U.S. sanctions kick in.
India, Iran’s No.2 oil client behind China, does not recognise the U.S. sanctions. But New Delhi needs a waiver to ensure its being insulated from U.S. financial system inerruptions.
India has been curtailing oil imports from Iran since September. India would lift 9 million barrels of Iranian oil in November, equivalent to about 300,0000 barrels per day (bpd), compared to an average of about 658,000 bpd from April to August, according to data available with Reuters.
“It has been quite a tough process to negotiate,” said Sanjay Sudhir, a joint secretary handling international cooperation in the Ministry of Petroleum & Natural Gas, in reference to efforts to diversify supplies and reduce Iranian imports.
“We were trying to balance our relationship with the U.S. and Iran, at the same time keeping our energy and security interest in mind,” he added.
India had diversified its oil supplies to cushion the impact of sanctions, he said.