Published: Thu, July 12, 2018
Business | By Kate Woods

Pompeo talks tough on Iran while visiting the Emirates

Pompeo talks tough on Iran while visiting the Emirates

The country supplied 18.4 million tonnes of crude oil between April 2017 and January 2018, but latest figures showed India's oil imports had declined by 15.9% in June, the first month after the USA said it would reimpose sanctions, Reuters reported citing data from shipping and industry sources.

"We are determined to convince the Iranian leadership that this malign behavior won't be rewarded and that the economic situation in the country will not be permitted to be rectified until such time that they become a more normal nation", he said.

Sanctions extending to the oil sector snap back on November 4 and the USA government has said it wants to zero out Iranian oil exports by then.

More news: Trump hails Boris Johnson as ‘a friend’

Rahaghi pointed out that certain privileges extended to India by Iran between 2012 and 2015 had helped New Delhi to continue importing oil from Tehran through the sanctions before the Iran Nuclear Deal (Joint Comprehensive Place of Action) was signed.

In a Tuesday interview with Sky News Arabia, U.S. Secretary of State Mike Pompeo suggested there might be some room to maneuver on Iranian oil exports.

Speaking to reporters on background, a senior U.S. State Department official said the Trump administration was "very serious" about imposing sanctions on Iran's oil, from which Washington suspects Iran derives revenue to fund malign behavior in the Middle East.

More news: Regrets mixed with pride as England fans digest World Cup heartbreak

US President Donald Trump announced in early May the unilateral withdrawal of the US from the Iran nuclear deal and the reinstatement of sanctions against the country, as well as against foreign companies who do business with it. Overall purchases climbed on a higher intake of crude from Mexico, the United States and Azerbaijan. Sources told Reuters last month that private refiners Nayara Energy and Reliance Industries Ltd plan to halt Iranian oil imports.

State refiners, accounting for about 60% of India's almost 5 million bpd of refining capacity, lifted about 10% more Iranian volumes in June compared to May, at about 454,000 bpd, the data showed.

Iran has criticised India for not making investments in the expansion of the Chabahar port saying that New Delhi will lose "special privileges" if the import of Iranian oil is curtailed. The sources declined to be identified since they are not authorised to speak to the media. In April to June 2018, the first quarter of this fiscal year, India's oil imports from Iran rose by about 24% to about 647,000 bpd from the previous quarter, the data showed.

More news: Israel's reinforced blockade on Gaza highlight of dailies — Newspapers Review

In the joint statement, they reconfirmed their commitment to the deal and its "economic dividends" for Iran, which has suffered worsening financial turbulence since Trump abandoned the accord, and vowed to work for "the protection of companies from the extraterritorial effects of United States sanctions".

Like this: