Iran Sanctions: India Lines Up Alternative Sources

India And Seven Other Countries Will Not Be Able To Import Iranian Oil From May 1, 2019 As The American Administration Ended All The Waivers On Iranian Oil Imports.


In 2015, P5 +1(Us, Russia, Uk, China, France & Germany)Countries Reached A Deal With Iran On Lifting Of Economic Sanctions On Iran Provided Iran Would Give Up A Bulk Of Its Nuclear Program me And Would Also Submit Itself To Inspections From Time To Time.

However, The Us Contends That The Nuclear Agreement Did Nothing To Deter Iran From Eventually Obtaining Nuclear Weapons, And Hence Wants The Restrictions Imposed By The Accord To Be Permanent.

Us Also Wants Iran To Abandon its Ballistic Missile Development Program me And To Stop Supporting Militant Groups In Lebanon, Syria ,Yemen And Elsewhere That United States Regards As Terrorist Organizations.

Significance Of India

India Is The World’s Third Largest Oil Importer, And A Large Share Of That Comes From Iran (23.5 Million Tones In 2018-19).

Not Only Is Iran India’s Largest Supplier There Are Also Other Associated Benefits Like 60-Day Credit, Free Insurance, Free On Board (Fob) Basis And A Barter Of Goods Arrangement.

India Also Sees Iran As A Conduit To Central Asia, A Region That India Considers Strategically Vital.

India Has Also Invested In Chabahar Port In Iran And Highways That Provide An Alternative Route To Both Afghanistan And Central Asia, Bypassing  Pakistan, Thereby Making Iran Important For Long Term Interests Of India.

Alternatives To Iranian Oil

India Does have Alternate Options-Saudi Arabia, The UAE, And Even The United States Are Potential Suppliers That Could Replace Iran As An Oil Source. Apart From It, Discovery Of huge Oil Field In Guyana, Offers A Alternative Source To India.

Guyana Oil Import: India Is Looking To Secure An Interest In Guyana’s Oil Fields That Are Being Hailed As One Of The World’s Largest Oil Fields In Recent Times. India Is Looking For Farm In Opportunities In Guyana.

Note: Under A “ Farm –In” Contract An Energy Firm Acquires A Stake In A Discovered Or Producing Field, The Lease Of Which Is Owned By Another Firm.