India is going to engage with European nations on measures to keep banking channels operative in order to protect Indian import of Iranian oil following the US decision to abandon the nuclear deal with the Islamic republic and reimpose sanctions
An Indian delegation of senior officials from the ministries of external affairs and petroleum plans to visit key European capitals early June to get a sense of the continent’s preparedness to keep the nuclear deal alive after the American pullout, and push for measures that would help shield trade with Iran, officials said.US withdrew from the nuclear deal earlier this month even as other signatories—the UK, France, Russia, China, Germany and the European Union—disagreed with the American move. Some sanctions on Iran will become effective after August 6, and others, including those related to the oil sector, after November 4.
“The scene is still unfolding. We haven’t yet come across any signs of hurdles in the banking channels or reinsurance with respect to trade with Iran,” said an official. A functional payment channel and reinsurance are critical to petroleum trade with Iran, the third biggest crude oil supplier to India. the Indian delegation will be keen on knowing the steps Europe is taking to keep the banking channels functional after the sanctions. India uses European banking channels and pays in Euro for all its oil imports from Iran. Indian officials haven’t had a chance so far to speak with the US on the likely fallout or the possibility of waivers, an official said. State refiners will act as per the advice of the government on Iran sanctions but no such advice has yet come, Indian Oil chairman Sanjiv Singh said. If supplies from Iran were to get disrupted due to sanctions, Indian Oil will be able to manage suitable replacement from different countries, Singh said.
The rising price lists of oil in the country says a lot about the bad condition of crude oil pricing. Indias step into the matter may help the nation.