India hopes for positive news from US on Iran oil

Amiti Sen New Delhi | Updated on November 01, 2018 Published on November 01, 2018

Waiver will allow imports without attracting sanctions

India is hopeful of a positive communication from the US by the weekend on a waiver from secondary sanctions that could be imposed by the Donald Trump regime for continuing to source oil from Iran beyond November 4.

“We have been getting positive signals from the US. But there has been no formal notification yet. We are hopeful that by Sunday we will get to hear something positive from Washington,” a government official told BusinessLine.

New Delhi has been in talks with Washington over the past few months on the US sanctions against Iran and its implications for India, which sources oil from the West Asian country. In May, the Trump government withdrew from the international nuclear deal with Iran, signed in 2015 to stop the Islamic nation’s nuclear programme in return for ending sanctions imposed by Western nations. The second round of sanctions, asking all countries to stop buying oil from Iran, will kick in on November 5.

While a waiver from secondary sanctions will allow India to keep importing oil from Iran, probably with caps, it will still have to get around the problem of payments.

“The waiver will not be for banking channels and India and Iran will have to work out the payment arrangement. A rupee payment mechanism, in which India pays for part of its imports from Iran in Rupees, which is then used by Iran to buy things from India, is a workable option,” the official said.

Published on November 01, 2018
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