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India defies US, EU, says won't cut Iran oil imports

Discussion in 'International Relations' started by SpArK, Jan 30, 2012.

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  1. SpArK

    SpArK SorCeroR Staff Member ADMINISTRATOR

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    India defies US, EU, says won't cut Iran oil imports

    Chicago: India has stood up to the US saying it will not cut its oil imports from Iran despite America and European Union's sanctions against Tehran. Finance Minister Pranab Mukherjee boldly made this clarification during his visit to the US on Sunday.

    Mukherjee's clarification came just a day before Foreign Ministers of the EU meet in Brussels on Monday to decide on the embargo.


    Washington wants buyers in Asia, which is Iran's biggest oil market, to cut imports to put further pressure on Tehran to rein in its nuclear ambition. But the US' new sanctions, which were authorised December 31, could make it difficult for New Delhi to pay Tehran for oil imports as they penalise financial institutions dealing with Iran's central bank.


    India, which imports 12 per cent of its oil from the Islamic Republic, cannot do without Iranian oil, the official said.


    "Iran contributes substantially and it is not possible for India to reduce the import from Iran drastically, because the countries that can meet the requirements of emerging economies, Iran is an important country amongst them," said Mukherjee.


    India defies US, EU, says won't cut Iran oil imports - World News - IBNLive
     
  2. nick_indian

    nick_indian FULL MEMBER

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    Uncle Sam is not going to like this .
     
  3. tariqkhan18

    tariqkhan18 Major Staff Member ADMINISTRATOR

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    What are they going to do except not liking this. :dirol:
     
  4. RoYaN

    RoYaN Lt. Colonel ELITE MEMBER

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    But Uncle Sam expecting this. Will be interesting to see how they respond.
    I found a very good review by a noon Indian of the situation so like to post it here.
     
    1 person likes this.
  5. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    there must already be a secret agreement between
    India and USA thats why US has not responded
     
  6. SpArK

    SpArK SorCeroR Staff Member ADMINISTRATOR

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    We are paying in Gold :respect:


    India to Pay Gold, Not Dollars for Iranian Oil, Markets Stunned


    India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, debkafile's intelligence and Iranian sources report exclusively. Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets.

    By trading in gold, New Delhi and Beijing enable Tehran to bypass the upcoming freeze on its central bank's assets and the oil embargo which the European Union's foreign ministers agreed to impose Monday, Jan. 23. The EU currently buys around 20 percent of Iran's oil exports.

    The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets.

    Iran's second largest customer after China, India purchases around $12 billion a year's worth of Iranian crude, or about 12 percent of its consumption. Delhi is to execute its transactions, according to our sources, through two state-owned banks: the Calcutta-based UCO Bank, whose board of directors is made up of Indian government and Reserve Bank of India representatives; and Halk Bankasi (Peoples Bank), Turkey's seventh largest bank which is owned by the government.

    An Indian delegation visited Tehran last week to discuss payment options in view of the new sanctions. The two sides were reported to have agreed that payment for the oil purchased would be partly in yen and partly in rupees. The switch to gold was kept dark.

    India thus joins China in opting out of the US-led European sanctions against Iran's international oil and financial business. Turkey announced publicly last week that it would not adhere to any sanctions against Iran's nuclear program unless they were imposed by the United Nations Security Council.

    The EU decision of Monday banned the signing of new oil contracts with Iran at once, while phasing out existing transactions by July 1, 2012, when the European embargo, like the measure enforced by the United States, becomes total. The European foreign ministers also approved a freeze on the assets of the Central Bank of Iran which handles all the country's oil transactions.

    However, the damage those sanctions cause the Iranian economy will be substantially cushioned by the oil deals to be channeled through Turkish and Indian state banks. China for its part has declared its opposition to sanctions against Iran.

    debkafile's intelligence sources disclose that Tehran has set up alternative financial mechanisms with China and Russia for getting paid for its oil in currencies other than US dollars. Both Beijing and Moscow are keeping the workings of those mechanisms top secret.

    India to Pay Gold, Not Dollars for Iranian Oil, Markets Stunned
     
  7. nick_indian

    nick_indian FULL MEMBER

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    That is not a good strategy . The Americans are not dumb . they will figure it out . i hope India has something in mind to be able to walk the middle path with respect to Iran and USA .
     
  8. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    is Finance MINISTRY GONE NUTS !!!!!!!!!!!!!!!!!!!!!!!!!!!!


    :fighting2:
     
  9. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    Pls understand, once EU & US bans Iran oil exports, we can cut a very highly discounted deal with them for oil. Why shud we forgo our national interests for EU or US??? They are running on our money today. Do you want India also to go their way?
     
  10. Nirvana

    Nirvana Major SENIOR MEMBER

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    EU,US Ban on Iran Oil imports will benefit Russian and China as they will get the oil with much lesser Price.India is dependent on Iran for some 12 % of Oil Import and should stick to its stand which is in our national interest.
     
  11. MilSpec

    MilSpec Mod MODERATOR

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    do not buckle to foreign pressure, Start trading in INR, I think the time has come to begin doing that. If we trade in INR, ball is in tehrans court. Worst case scenario, use russian source
     
  12. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    Its a rumour being started by EU & US to rally Indians against Iran Oil. Lets just overlook it.
     
  13. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    I think this makes it clear that India is not a responsible enough member of the world community for permanent seat on the United Nations Security Council.
     
  14. Rehan123

    Rehan123 2nd Lieutant FULL MEMBER

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    Uh huh.. So if India does not agree with the US/Europe it is irresponsible? China and Russia have both refused to follow this ban and will continue to buy Iranian oil. Even USA's closest Asian allies Japan and South Korea have indicated that they will not stop buying Iranian oil completely...

    Frankly India has to fulfill it's responsibility to its people before any others. Iranian oil forms about 12-13% of India's oil imports. Who will make up for the shortfall if India follows this ban? Not USA. Not UK. Not the EU. Not even Saudi Arabia, who have expressed an inability to ramp up production to the levels required to meet Indian demand in the short to medium term.

    So what is India to do? Follow this US / Eu ban that not even all permanent members of the UNSC have agreed to follow and leave it's citizens and industries to suffer from lack of enough oil or act like a normal nation would and look after it's own interests first and foremost? The answer should be quite obvious to all...

    Also the article stating that India will pay in gold comes from an Isreali website and one which seems to me, on first sight, as right-wing in it's leanings. Considering the geo-political issues between Israel and Iran and the complete lack of any sort of quote or authentic source, it is more than likely that this is just unadulterated bullshit presented as news. To give any sort of significance to this would be foolish in the extreme.

    EDIT: Just why would India pay for Iranian oil in gold instead of paying the same way as the Russians or the Chinese or the Koreans are doing? Eh?? Bah!! This stupid article has really got my goat..
     
    Last edited: Jan 31, 2012
  15. nick_indian

    nick_indian FULL MEMBER

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    What would you say about China and Russia then who are already there ?:woot:

    What about America ? Iraq war , March 2003 , non existant WMDs rings a bell ?
     
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