Despite the threat from the US that it will not do
business with any country that trades with Iran after sanctions effective
November 4, India is allowing state refiners to import Iranian oil with Tehran
arranging tankers and insurance.
The Trump administration has threatened to impose
'secondary sanctions' on the countries which will not follow its diktat on oil
import embargo. The secondary sanction could be in various forms but the most
throbbing would be being blocked from American financial System which no
country could afford.
The attempt to keep Iranian oil flowing mirrors a step by
China, where buyers are shifting nearly all their Iranian oil imports to
vessels owned by National Iranian Tanker Co (NITC), reported news agency
Reuters quoting sources.
The moves by the two top buyers of Iranian crude indicate
that the Islamic Republic may not be fully cut off from global oil markets from
November, when US sanctions against Tehran's petroleum sector are due to start,
India is the second largest buyer of petroleum from Iran
after China, and Iran is the third largest supplier to India after Saudi Arabia
and Iraq. New Delhi was not happy with the Trump administration's decision pull
out of the Iran nuclear deal last month and its announcement that sanctions
will be back in force in two tranches by November 4.
External affairs minister had said that "India follows only UN sanctions
and not unilateral sanctions by any country" days after President Donald
Trump pulled out of the Iran deal.