Japan's Oil Refiners Temporarily Halt Iranian Loadings On Sanctions Threat

Lloyd Doyle
September 22, 2018

The statement comes two months before a second tranche of USA sanctions on Iran are reimposed.

India, one of the biggest importers of Iranian oil, is unlikely to do so given its huge energy needs. America restricted the use of United States dollar against pay Iran from November 1.

Two industry sources also told Reuters Thursday that India will settle payments for Iranian oil using rupees through local banks starting in November as the sanctions will make it hard to settle trades through European banks.

U.S. President Donald Trump has threatened to sign an executive order on November 4 to snap back U.S. sanctions on Iran's energy exports and worldwide financial transactions. The Trump administration has threatened entities and countries with consequences if they do not bring down their import of Iranian oil to zero by November 4.

Chennai Petroleum will stop processing Iranian crude oil from October to keep its insurance coverage once new sanctions by the USA against Iran go into effect, sources said.

However, India has been appraising the USA about its energy demand to fuel its economy as well as the importance of Iranian oil.

The sources said India has selected UCO Bank and IDBI Bank for facilitating payment to Iran.

"Chabahar is a very important project for us, not only for access to Afghanistan and Central Asia, but also for Afghanistan itself", he said, adding that the development of the port figured in the high-level talks between India and the United States in New Delhi earlier this month. Before the sanctions kick in, Iranian oil exports have dropped significantly as many countries have curbed their purchase under pressure from the US.

Currently, India pays its third largest oil supplier in euros using European banking channels.

Work was slowed by the difficulty equipment suppliers had in obtaining financing for the project, a effect of hesitancy among banks about whether the USA might still try to sanction the project. India has been working through diplomatic channels to look at the U.S.to grant exceptions from the upcoming sanctions.

Chennai Petroleum's reduced demand will further cut India's imports from Iran to about 10 million tonnes in October, lower than previous estimates reported by Reuters. But the United States told allies not to expect waivers as it boosts pressure on Iran.

Other reports by Iphone Fresh

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