Text size:

  • Small
  • Normal
  • Large

India expected to further cut Iran crude oil imports

India Dispatch: Iranian crude imports into India are expected to continue to decline this year, as the country secured a fresh six-month waiver from the United States on sanctions against Iran this week, analysts say.

Iranian crude imports to India are expected to continue to decline this year, as the country secured a fresh six-month waiver from the United States on sanctions against Iran this week, analysts say.

"India has reduced its dependence on crude oil imports from Iran to 13.3 million tonnes, 7.3 per cent of crude oil imports, in 2012-2013 from 18 million tonnes, 10.5 per cent of crude oil imports, the previous year," said Mayur Matani, an oil and gas analyst at ICICI Securities.

"This year also, imports are expected to plunge further to around 11 million tonnes as Mangalore Refinery and Petrochemicals has not imported any Iranian oil so far this fiscal year."

Mangalore Refinery and Petrochemicals, India's largest importer of Iranian crude, stopped importing from Iran, saying that domestic insurance companies were refusing to cover refineries that processed Iranian crude.

The US state department approved exemptions on Wednesday for India and China, along with seven other countries. Those nations have come under pressure to reduce crude imports from Iran to secure the waivers and they were granted "based on additional significant reductions in the volume of their crude oil purchases from Iran or for reducing those purchases to zero and remaining there", according to a statement by John Kerry, the US secretary of state.

The US sanctions are designed to choke off revenues for Iran and curb its nuclear programme. The waivers are reviewed every six months.

"A total of 20 countries and economies have continued to significantly reduce the volume of their crude oil purchases from Iran or have completely eliminated such purchases," Mr Kerry said. "This determination takes place against the backdrop of other recent actions the administration has taken to increase pressure on Iran."

US and European sanctions resulted in Iran's crude exports being cut in half last year.

Iran's crude exports fell to the lowest in decades in May, according to industry sources and tanker-tracking data. Crude shipments dropped to 700,000 barrels per day (bpd) last month, the data from sources showed, about a third of Iran's oil exports before the current round of sanctions. Washington is now seeking to cut shipments to less than 500,000 bpd through tighter sanctions.

India's purchases of Iranian crude over April and May declined by about a quarter compared to the first three months of the year, preliminary data suggest, according to Reuters. India is the second biggest importer of Iran crude after China.

The US under secretary for political affairs, Wendy Sherman, speaking in New Delhi two weeks ago, praised India's reduction of Iranian crude imports.

"I think that India has really made tremendous progress in reducing the level of its importation of Iranian oil. India has long been a leader in non-proliferation," she said.

"They have stood side-by-side with all of us in the international community to say that Iran should not acquire a nuclear weapon," she added. "We greatly appreciate all of the leadership that India has provided, including their enforcement of sanctions."



Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National