Wednesday, May 09, 2012

Clinton wants India to further cut Iranian oil imports

NEW DELHI: Even as the US was pressing India to further reduce its oil imports from Iran, a 56-member delegation from Tehran was in the capital to push trade ties.


US Secretary of State Hillary Clinton, who is here on the last leg of her three-nation Asia trip, today pressed India to do "even more" to cut its oil imports from sanctions-hit Iran.

However, the Iranian trade delegation led by President of their Chamber of Commerce and Industry Yahya Ale-Eshagh made it very clear they were here to push for more business and said, "you (India) need oil and we need to sell".

Pushing India to further reduce oil purchases from Iran, Clinton, ahead of her meeting with Prime Minister Manmohan Singh, said, "We hope they will do even more and we think there is an adequate supply in the market place as Saudi Arabia, Iraq.

We think this is part of India's role in the international community." Iran is India's second largest oil supplier after Saudi Arabia.

Clinton's remarks came when she was asked why the US wants India to reduce oil imports from Iran when India is not an oil producing nation.

However, Ale-Eshagh expressed confidence that his country will solve its own difficulties in the wake of the global pressure sought to be put on other countries to stop oil imports.

"You(India) need oil and we need to sell and we need good cooperation....We will solve all difficulties. I think everything will be solved," he said.

The US has been urging India and other countries to slash oil imports from Iran to step up pressure on Tehran to comply with international demands over its nuclear programme.

India, which imports 80% of its crude oil and relies on Tehran for 12% of those imports, has said it needed to continue to buy Iranian oil to meet its domestic requirements.

Though India has publicly not said it was aiming to cut back on oil imports from Iran, the country's top oil importers have been pushed to reduce Iranian oil imports by 15-20 per cent.

The fresh US sanctions, authorised by President Barack Obama on December 31, will penalise any financial institution that deals with the Iranian central bank, making it more difficult for India to clear its oil payments to Iran and will hurt its companies doing business there.

However, significantly, a large Indian trade delegation had visited Iran in March to forge business links and to explore opportunities for additional trade and investment.

And now an Iranian trade delegation is here to explore opportunities to enhance trade and business ties with India.

indiatimes.com


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