Next Government to decide on Oil Imports from Iran

India has told Iran that the next government would take a call on oil imports from Iran after weighing factors including ‘commercial consideration, energy security and economic interests.

US Sanctions and Iran

President Trump had unilaterally walked out of the Joint comprehensive plan of action (JCPOA) agreement and had reimposed the sanctions on Iran.

US had granted sanctions waiver to India along with countries like Japan, South Korea, Turkey, Italy, Greece and China. The sanctions were waived recently as part of the US strategy to exert maximum pressure and isolate Iran.

With the end of waiver India cannot import oil from Iran, or else its state-owned or private entities will face US sanctions.

In the meeting with the External Affairs Minister of Iran, Indian External Affairs Minister Sushma Swaraj conveyed that India would like all parties to the agreement to continue to fulfil their commitments and all parties should engage ‘constructively’ and resolve all issues ‘peacefully and through dialogue’.

India Oil Imports from Iran

India is the second biggest buyer of Iranian oil after China. India was pushed by the US to restrict its monthly purchase to 1.25 million tonne or 15 million tonne in a year (300,000 barrel per day), down from 22.6 million tonne (452,000 barrel per day) bought in financial year 2017-18.