India devising a state guarantee to cover Iranian Oil Imports

‘India plans coverage for Iran oil imports’

Fri, 09 Aug 2013 07:27:35 GMT

India is reportedly seeking to devise a mechanism to provide a state guarantee to refineries importing oil from Iran, whose energy sector has been targeted by US-led sanctions.

India’s Finance Ministry decided to consider the “facility/sovereign guarantee” on July 31, Reuters quoted an industry source in New Delhi as saying on Thursday.

The refineries had previously been unable to carry out imports from Iran as international insurance agencies are barred from covering deals with Tehran due to the US-led sanctions against the Islamic Republic.

Iran has also previously offered to provide sovereign guarantees of its own for tankers shipping its crude oil to India.

The offer made to India by Iran’s Ministry of Industries, Mines and Trade covers liabilities between USD 50 million and USD 1 billion per incident through sovereign guarantee and the government special fund.

India is among Asia’s major importers of energy and relies on the Islamic Republic of Iran to meet part of its energy demand.

The United States, Israel and some of their allies have repeatedly accused Iran of potentially pursuing non-civilian objectives in its nuclear energy program, with the US and European Union using the claim as an excuse to impose illegal sanctions against Tehran.

Iran has categorically rejected the allegation, stressing that as a committed member of the International Atomic Energy Agency and a signatory to the Non-Proliferation Treaty it is entitled to develop nuclear technology for peaceful purposes.

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