India’s oil ministry has told its refiners to prepare for a “drastic reduction or zero imports” of Iranian oil, Reuters reported Thursday.
The decision for India to reduce, or even eliminate its oil imports from Iran, is due to American pressure. Though India has said that it would only abide by international sanctions on Iran, not unilateral American ones, it does not want to run afoul of rules that could prevent it from having access to the United States financial system.
The decision for India to stop importing Iranian oil and find alternatives comes after the U.S. asked India to find alternatives to Iranian oil. India is the world’s second biggest importer of Iranian oil after China.
U.S. Ambassador to the United Nations Nikki Haley, who has been in India, urged Prime Minister Narendra Modi to reduce India’s reliance on Iranian oil. The U.S. imposed new sanctions on Iran, in the wake of President Donald Trump’s May decision to withdraw from the 2015 nuclear deal with Tehran. The U.S. is giving nations until August before some sanctions come into effect. Other sanctions, including those affecting the oil industry, will kick in in November.
Russia and Saudi Arabia will be boosting production to make up for the shortfall caused by sanctions on Iran.
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