According to the MEA, Iran is India's third-largest oil supplier — behind Iraq and Saudi Arabia
Referring to the US advisory to countries to cut down their oil imports from Iran to 'zero' by November 4, India on Thursday said it will take all necessary steps, including engagements with relevant stakeholders to ensure its 'energy security'. Without clearly specifying India's position on the US warning, Ministry of External Affairs (MEA) spokesperson Raveesh Kumar said the statement by the Trump administration was not India-specific and applies to all countries.
While official sources here indicated that the Modi government was yet to firm up its position, it was reported that major oil refineries have been asked quietly to halt Iranian oil imports from November. Over the past three days, both MEA and Oil Ministry were engaged in extensive deliberations with several countries before making public position on the US sanctions public.
According to the MEA, Iran is India's third-largest oil supplier — behind Iraq and Saudi Arabia.
Iran supplied 18.4 million tonnes of crude oil during April 2017 and January 2018 (first 10 months of 2017-18 fiscal).
Earlier, the government officials had said that India was looking at slashing oil imports from Iran and replacing them with more purchases from Saudi Arabia and Kuwait. Sources here said that refiners have now been asked to prepare an alternate plan. The anxiety stems from the US's tough message, even as External Affairs Minister Sushma Swaraj only last month had stated that India does not recognise unilateral restrictions imposed by the US, and instead follows only UN backed sanctions. Experts here said with the US taking tough position, India will be forced to take action to protect its exposure to the US financial system.
During the previous round of sanctions against Iran, India had devised a system to buy oil by partially bartering goods and remitting payment in rupees via UCO bank, which don't have any business in the West. Later, refineries were making payment through State Bank of India (SBI) and Germany-based bank Europaeisch-Iranische Handelsbank AG (EIH). The SBI has now told refiners that it wouldn't support payment once the sanctions come in to effect.
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