In a development that is likely to affect crude oil supplies to the country, India has banned U.S.-sanctioned Iranian ships from entering its waters.
“We were to import four tankers, or cargoes of about90,000 tonnes each, from Iran in July. But we were able to get only one as the cost, insurance and freight (CIF) approval was withdrawn by the government,” Mangalore Refineries and Petrochemicals Limited (MRPL) managing director P.P. Upadhya told journalists here on Friday.
After the European Union’s sanctions came into effect on July 1, the Centre allowed MRPL and other companies to import crude from Iran in ships arranged by Tehran and on a CIF basis. It was left to Tehran to arrange for ships and insurance. However, permission was revoked within days.
The U.S. imposed sanctions on the National Iranian Tanker Company and its 58 vessels. In 2011-12, MRPL contracted for supply of 7.3 million tonnes of crude from Iran, but imported only 6.2 million tonnes. India cut imports to win a waiver from the U.S. sanctions. But the waiver for crude imports did not cover shipping, MRPL Director (Finance) Vishnu Aggarwal said.
Crude imports from Iran are possible only if the state insurers, led by General Insurance Corporation (GIC), provide cover for domestic ships carrying Iranian crude. However, the matter of sovereign guarantee for ships is still pending with the government.
GIC has agreed to provide domestic ships with $50-million cover for hull and machinery and a similar one for protection and indemnity, but this has been delayed as the company has not got approval from the insurance regulator.
Mr. Upadhya said MRPL had imported 1.2 million tonnes of crude from Iran so far this fiscal begun April 1. To compensate for the loss of Iranian supplies, the company almost doubled its purchase from the spot market. It was now buying up to three cargoes or shiploads every month, instead of one as it did earlier. This year, it started buying oil from Iraq after signing an annual contract for 11,000 barrels a day or just over 0.5 million tonnes. It bought 2.5 million tonnes on a term contract from Saudi Arabia and another two million tonnes from Abu Dhabi.
Mr. Agrawal said the company covered supplies of up to nine million tonnes this year from overseas sellers and domestic fields like Bombay High. Of the 14.5 million tonnes of crude processing planned for this year, the company depended on Iran for only five million tonnes. “Even out of this, we have imported 1.2 million tonnes. So the uncovered supplies are very less.”
Keywords: India-Iran trade ties, Indian ban, Iran crude ships, U.S. sanctions
A very sad day in India's foreign policy. Manmohan Singh has brought
shame to the country of Mahatma Gandhi and Jawaharlal Nehru. I am
ashamed of the UPA Govt.
We already have 'weak knees'..Now our arms too are getting twisted !
Western people obey the orders of USA. Just check how many Indians does
like American sanctions. Everybody knows sanctions over Iran will weaken
China,India,Pakistan and other Iran dependent nations. Without a sense
India must not make itself a foolish decision ! A friend a neighbor even
many war between Pakistan Iran kept neutral while they were chronic Islamist , but America sent their 14nth fleet to help Pakistan in the
war of 1971-72. India after Manmohan Sing take charge sailing with the
American wind is ferocious !!!
This indicates how much the UPA govt. is influenced by the foreign powers. Today i can say with a 100% confidence that the Indian govt. doesn't have its foreign policy. This is a drastic decision as it will increase inflation in the country.
It is heartening to such a unanimous protest against the banning of Iranian ships from our waters. And to think that this has been done at the best of the only power in the world that has used atomic weapon. Has the world seen a greater terror than the atom bombing of Japan? Yet Manmohan Singh thinks that in the name of fighting terrorism we should be on the side of the US when it furthers its hegemonic conquest. When it comes to India's energy supply Iran is our first choice. But this government has abandoned the Iran gas pipeline project. With minor adjustments in our refineries Venezula crude could be an answer to our ever increasing petroleum bill. But we fight shy of signing an agreement with Venezula refuses to toe the US line. What will be left of India. We want to outsource 60% of the economy through retail trade. Our energy supply is controlled by the US. Don't we see a hollowed out Europe struggling for survival after 50 years of leaning on the US?
How much longer is India going to dance to USA's diktat? The UPA
outfit surrendered our foreign policy to USA the day it took office
some 8 years back and the outcome has been most unfavourable for us.
Don't we realise that USA is a most undependable ally and discards a
country after using it to its own benefit? We have got unnecessarily
involved in Afghanistan and suffered casualties from terrorists in the
process; we have antagonised Iran by voting twice against it at the
IAEA; we have angered China by poking our nose in the sensitive South
China Sea; and now we have stabbed ourselves in the back by stopping
Iranian ships carrying oil for us knowing well enough how much we need
this vital commodity. Why must we commit political and economic
harakiri by toeing USA's line? We must not be under any illusion that
we will get a UN high table seat in return - a carrot dangled by USA -
because the P5 has a tacit understanding of not allowing any increase
in its number.
Dumb government, stop acting in America's best intrests!
I am not sure if the Manmohan Singh governmnet is working for India's interests or US interests. If we continue like this India will end up like a third grad poodle of the US, behind the UK and Japan!
Hurray to International solidarity ! If India were to sanction ships of countries such as Pakistan, Portugal, China etc. will USA ban those ships from its waters ? Common India, behave like a sovereign country. Do not get dictated to by western powers. Had Mohandas Gandhi, Subhas Chandra Bose and other countless millions of Indians fought to gain freedom for India to part at last so easily?
And why are we doing this? Ridiculous how far we'll go to extents to satisfy for which we have no strategic justification rather more unrewarded costs to pay. Unfortunately, for the common man, the government has piled hardships to such an extent that this doesn't matter anymore at all. In any case, let's be ready to shell out more money for our fuel and be ready to announce more downard industrial production.
At a time ,when every developing country is developing their assertive independent foreign policies,we are retrograde in our policy.On one hand we talk about BRICS bank and the like,on the other hand we are sabotaging our relations with traditionl allies in the middle east.That too when American economy is at its lowest ebb.It seems UPA government is throwing the sovereignty of the people of India in the white house garbage bin.
Iran is an evil regime that evryone knows. But equally the Western regimes and the Indian UPA regime are too evils. No one regime is honest, genuine or champion for democracy, freedom, equal rights, fair justice, Rule of Law, human rights, transparency and ethical. Although the Western leaders boast about democratic values and human rights, they are still living with the Apartheid mindset.
As the conflict between the West and Iran sharpens, India would find it harder and harder to play both sides against the middle.
This is complete buckling of UPA to US pressure. If they are really concerned about the Iranian problem, why not impose a ban on its own on day 1 itself?
India is Ultimately going to pay a heavy price for toeing the U.S. Line
and It looks the Man Mohan Singh Govt is purely run as per the dictate of U.S. Its going to be very suicidal for India soon and India and Indians will repent for the mistake very badly
Despite saying many times that it will not recognize unilateral scanctions against Iran, it seems that India is trying its best to do what the US wants. I am ashamed!
The Oil politics
We want Oil. US want oil also. US collect oil from Asian countries in their own style. But they block us from collecting or buying oil from Iran. Is US ruling us?
This is only going to help, in the rise of prices across the country. The neo-imperialism is starting to affect India a harder way now. We have already opted for a more riskier, TAPI gas line under pressure from the USA and now, we are hitting our own legs with this step.
I don't understand why my country has to surrender its sovereignty to a bullying superpower -- India and Iran have ancient historical ties which are still continuing on various fronts. From business perspective, Iran is a neighbouring country to India forever -- this means getting oil from Iran will be reliable and also cost-effective as the ships don't have to travel far. India's only access to Afghanistan and Central Asia is through Iran. Have the officials forgotten all this? Why are these people surrendering the sovereignty of India to a foreign superpower America which is halfway round the Earth? Iran and India are neighbours and good friends and this must not be allowed to be destroyed by anybody.
very sad news.how much india will bow infront of uncle.we should take our decision.by the time how government fill gap as demand is still.
at the end citizen have to pay this by again hike in fare.government should consider alternative before making such decision which affect bilateral relationship,and Iran-Pakistan-India gas pipeline.
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