S Korean firms to continue coop. with Iran despite U.S. sanctions

Marcus Newton
September 23, 2018

One is how much of Iran's oil China, India, and Europe will buy in October and then in November, when the sanctions kick in. The Trump administration is now in talks with India on issues related to Iranian sanctions.

The goal is to persuade Iran's leaders to stay in the nuclear deal for a few more years - perhaps long enough for Trump to be replaced and for a new USA president to rejoin the deal.

Crude exports at 1.6 million bpd are down by around 35 percent compared to Iran's peak 2.5 million bpd exports in April, just before the US announced it was slapping sanctions back on Tehran.

India will Import Iranian Oil but how that is what Delhi is exploring.

Under the process, India used to pay in euros to clear 55% of its dues through Halk bank based in Ankara. The Trump Administration has said, "Either you can do business with Iran or with us".

"India has long sought to develop Iran's Chabahar port, which would give India direct access to Afghanistan and Central Asia without relying on transit routes through Pakistan", the report said.

Work was slowed by the difficulty equipment suppliers had in obtaining financing for the project, a effect of hesitancy among banks about whether the United States might still try to sanction the project.

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India has also been hoping that the United States will give it some relief from the sanctions.

The CRS report said that during a visit to India in June 2018, US Ambassador to the UN Nikki Haley said the Trump administration might consider providing exemptions to US sanctions to enable the Chabahar work to continue because the project is vital to Afghanistan's development and reducing its dependence on Pakistan.

Sources said that the 28-nation bloc European Union has conveyed New Delhi that they were in process of devising a payment mechanism as U.S. dollars for oil transaction will be restricted post November 4 when the USA sanctions come into force.

Chennai Petroleum's reduced demand will further cut India's imports from Iran to about 10 million tons in October, lower than previous estimates reported by Reuters.

The official said refiners have booked oil cargoes from Iran for the current month as well as for October.

Till now, the 28-country bloc has not put forward a compact proposal for making payments to Iran for buying of oil. India can not use the existing payment mechanism since the United States under Donald Trump has opted for the renewal of sanctions on Iran, which will affect the banking sector and oil payments from November 4.

Other reports by MaliBehiribAe

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