US decision to end Iran oil sanctions waiver won't affect India's investments in Chabahar port
NEW DELHI: US’ decision to end the Iran oil sanctions waiver will not affect India’s investments in Chahbahar port in Iran. The revocation of the “significant reductions exemption” (SRE) which allowed eight countries, including India, to continue to source Iranian oil for the past six months ends on May 2, following which the US expects oil imports from Iran to go down to zero.
While India may have been insulated on the Chahbahar front, its current plan on using a rupee payment account for Iran’s oil may be in danger. India has been paying for a large percentage of its oil imports through a rupee mechanism that is deposited in an escrow account in an Indian bank. Iran uses that money to buy essential items like foodstuff, medicines etc from India. After May 2, US has told India it would not allow India to add to the corpus, although Iran would be able to continue to use whatever is left in the account. Indian officials say there is little “clarity” on the matter.
US officials have been careful to show they are trying to ensure market stability (although crude prices are at a six month high after Monday’s announcement) and they want to “partner” with allies as they move to a zero Iranian oil state. Pompeo’s announcement clarified there would be no more waivers.
The UAE and Saudi Arabia have told the Indian government that they would ensure adequate supply of oil to meet India’s needs. The US too intends to step up its oil exports, though its pipeline infrastructure needs to be augmented. Under the waiver, India was reportedly allowed to import 300,000 barrels per day. India will suffer quite a bit, because its refiners, are configured for the particular variety of Iranian crude.
The “maximum pressure on Iran”, sources said, would only ease if Tehran agreed to renegotiate the nuclear deal.
If India violates the sanctions and continues to buy oil from Iran, India risks inviting “secondary sanctions” on Indian companies and entities. Sources said these would include a ban on using the international SWIFT system, forfeiting dollar assets as well as any assets in the US. Most Indian companies have refrained from engaging with Iran.
At this moment, despite Iran, Venezuela and most of Libya not being in the international oil market, oil prices are hovering around the $70 mark. If prices rise significantly, its not clear how India will deal with the situation.
译文来源：三泰虎 http://www.santaihu.com/47465.html 译者：Jessica.Wu
Santosh Iyer - 6 hours ago -Follow
So Modi''s hugging diplomacy has failed with Trump !
Konfucius Ken - 7 hours ago -Follow
China which opposes US sanctions will gain favour with Iran and together with Russian and Syrian augmentation would manage to keep Iran buoyant and probably better off. The Pakistan PM''s visit to Iran in May definitely would be on behest of mutual trade(including oil products) ..
Anis Shaikh - 7 hours ago -Follow
India will loose big time in. Chabahar port after sanction.
Kapalee - 1 hour ago -Follow
India need to work on a long term Energy strategy. This should include ways and means of reducing dependence on oil, alternative sources of energy and CAPEX planning for the same.
Harnessing hydro power by building more dams across perennial rivers, increase wind power generating capacity etc including responsible increase in nuclear power generation.
Swaminath Giri - pune - 5 hours ago -Follow
Yes, US rules the world. Whether Democrats or the Republicans in power, it does not matter. They try to squeeze the world to keep them under their toes. So much dependence of most of the third world nations on one Country called US.
Santosh Iyer - 5 hours ago -Follow
Why is Modi quiet ? He is a tiger before Pakistan but seems to be a mouse before USA !
Ravendra - 7 hours ago -Follow
US is an evils country. they can do and will do anything for their benefit.
Ulhas - Navi Mumbai - 7 hours ago -Follow
US wants "SANCTION" Iran because it SUSPECTs that Iran is making nukes. In that case, WHY didn't it "SANCTION" the TERRORIST REPUBLIC of PAKISTAN when it announced its intentions to make nukes in 1966?
Sundara - 6 hours ago -Follow
Govt is doing blunders in the matter of Iran. GCC always dance to the tune of US. We are going to loose the trust worthy of Iran for the unwanted political drama of US.
No Reply - NYC - 8 hours ago -Follow
Indians are extremely funny and confused. Sometimes they say China has invaded Doklam we need to work woth USA and sometimes they say we need ro work with the communists to counter most powerful country in the world? WHAT JOKERS..
proud Indians - USA - 14 hours ago
- Modi says to Trump: Aye Aye Sir.
BJP Indians all Hail Modi.
- Rahul: My best chance to dethron Modi, thanks to our White master the USA
Indian Farmers: we kill ourselves, hoping a better next life, not in India but as an Indian IT talent in USA
Mohammed AbdulMalik - 1 hour ago -Follow
Why should US dominate or dictate..; No body questions? Just because Indian friend IRAN wants to progress on nuclear technology it is punished. Actually, US wants to protect it''s illigimate child ISRAEL.
NOW, on other hand India wants wepons from Israel, but it is not a fully recognized state... So, INDIA should go for getting oil from Iran which is good for the national interest than for a short time,/term wepons from US and Israel.