Iran 'could halt' India oil supplies

[BanglaBhoot]

TEHRAN — Iran has "seriously warned" India that it could halt crude supplies if New Delhi failed to pay overdue payments hampered by international sanctions against Tehran, the oil ministry said Sunday.

"We have seriously warned the Indian side of the possibility to halt oil exports if a solution is not found to clear its arrears," Fars news agency quoted National Iranian Oil Company managing director Ahmad Ghalebani as saying.

Iran's state-run company, however, said it was working to maintain its trade with India, which as its second largest client after China absorbs about 20 percent of its crude exports.

These warnings "do not mean supplies have been halted and we have no plans to stop exports to the Indian market," said NIOC director of international affairs Mohsen Ghamsari.

India has been struggling for six months to pay Tehran for the oil supplies, through various Asian and European banking channels -- Germany in particular -- which have been successively closed one after another.

On Friday reports cited unnamed executives at two Indian refinery companies as saying Iran's state-run company had warned them that it could stop oil supplies from August if New Delhi failed to clear its long-pending debt.

As Tehran refuses to be paid in rupees, Indian companies have accumulated a debt of about two billion dollars since April, according to figures provided by the oil ministry to Iranian media.

The possibility of India paying in gold for Iranian crude is one of the solutions under consideration, according to Iranian media.

Iran is the second-largest crude exporter to India after Saudi Arabia but payments have hit hurdles due to international sanctions slapped on Iran over its nuclear programme, which world powers fear masks a military drive.

Despite the Islamic republic's repeated denials over its nuclear ambitions, the United States and the European Union have targeted Iran's banking, financial and vital energy sectors with unilateral measures.

The annual trade between India and Iran stands at an estimated figure of 12 billion dollars annually, with India purchasing some 400,000 barrels of Iranian crude per day.

AFP: Iran 'could halt' India oil supplies

 

[Roby]

Sorry to burst your bubble Munshi, but-

We'll not cut oil supply to India: Iran


Iran will not cut oil supplies to India despite warning to refiners over their failure to pay for several months, an official was quoted as saying by the Oil Ministry's news website SHANA on Sunday.

A warning has been sent to those refineries that are debtors but sending such a letter does not mean Iran's oil exports have been cut and we have no intention to cut our exports to the Indian market," Mohsen Ghamsari, head of international affairs at the National Iranian Oil Co. (NIOC), was quoted as saying.

In a letter to Indian refiners dated June 27, Iran threatened to halt oil supplies in August unless a resolution to the problem was solved, sources at the refiners and NIOC told Reuters on Friday.

India owes Iran $2 billion for oil imports in recent months due to the payments dispute related to US moves to isolate Iran, which Washington suspects of seeking nuclear weapons. Tehran denies such a charge.

The impasse was triggered in December when the Reserve Bank of India ended a regional clearing mechanism, under US pressure.

Another NIOC official, Deputy Oil Minister Ahmad Ghalebani, said that although some news reports had said Iran had already cut its exports to India, it was not true.

"Iran's crude exports to India are continuing and the news reported in some media that Iran has cut its crude exports to India is absolutely wrong," SHANA quoted him as saying.

Ghamsari said he was optimistic about talks with India.

"The talks with the Indians are still under way, and considering our country's good relations with India, we are hopeful that this problem gets solved as soon as possible."

 

[AZADPAKISTAN2009]

There is no legitimate basis for sanctions on Iranian companies or banks

This is similar to what Japan faced in sanctions prior to world war 2 - on same route

I think Russia / China should step forward to prevent repeating of world war 2 if this continues

 

[harpoon]

Just fly the 2 billion dollars in cash, gold or other valuables.

Its ironic that Iran has problem with all western countries, but wants their payment in their currency preferably in the currency of 'The Great Satan'. Talk about the difference b/n preaching & practice.

 

[alizahid]

Just fly the 2 billion dollars in cash, gold or other valuables.

Its ironic that Iran has problem with all western countries, but wants their payment in their currency preferably in the currency of 'The Great Satan'. Talk about the difference b/n preaching & practice.

interesting point!! the article failed to mention which currency iran wants to be paid in. Im curious to know.

 

[pmukherjee]

Iran is absolutely right in demanding that the arrears be cleared ASAP. India has to work out a way to make the payments in time. Yes, dealing with a nation under UN sanctions is not easy but we have to learn not to give in to US pressure every time. India's energy security is more important than UN sanctions. Iran is a friend, why the hell should we not pay for the oil we buy from them.

 

[harpoon]

interesting point!! the article failed to mention which currency iran wants to be paid in. Im curious to know.

Almost all the international trade is done in US Dollars or Euro.

 

[harpoon]

Iran is absolutely right in demanding that the arrears be cleared ASAP. India has to work out a way to make the payments in time. Yes, dealing with a nation under UN sanctions is not easy but we have to learn not to give in to US pressure every time. India's energy security is more important than UN sanctions. Iran is a friend, why the hell should we not pay for the oil we buy from them.

Can't we pay through our banks like State Bank of India.

 

[M8R]

UN Sanctions don't help at all - In fact they make the life of common citizen worse - The elite will still enjoy life.In Iraq it is estimated that well over 100k kids died largely due to medicine shortage created due to UN Sanctions on Iraq post 1st Gulf war.

 

[American Pakistani]

Thread is already running i think.

 

[Dharmachakra]

Oil supply to India will continue: Iran
Iran's oil exports to India are continuing with no plans to halt supplies after a warning to the neighboring country over delays in paying for imported crude, an Iranian oil ministry official said. "A warning was sent to indebted refineries but sending this letter doesn't mean Iran's oil exports to India were cut," Mohsen Qamsari, the National Iranian Oil Co's (NIOC) head of international affairs, told the oil ministry's news website, Shana. "We have no intention of halting our supplies to the Indian market."

A Wall Street Journal report published on July 1 cited two Indian refiners as saying that Iran warned it will stop oil supplies starting next month if pending bills aren't cleared.

NIOC made the warning in a letter requesting a sustainable mechanism for making payments, the WSJ reported. Indian refiners owe Iran about $2 billion over oil imports.

 

[Way to go]

no money no oil.

 

[gulte]

Iran should agree using INR for trade, given our currency is stable from last 5 years.

 

[harpoon]

no money no oil.

Did you read the article before commenting.

There is money, but no banking channel to transfer the funds to Iran due to sanctions.

Well thats the price you pay when you decide to make enemies out of very powerful nations.

 

[harpoon]

Iran should agree using INR for trade, given our currency is stable from last 5 years.

Sorry, they will chose the currency of the 'Great Satan' over INR any time.