Business Standard

US tells Modi it is important to cut imports of Iran oil

- MICHELLE NICHOLS

US Ambassador to the UN Nikki Haley told PM Modi India must cut Iranian oil use, but the US would allow India to use an Iranian port as corridor to Afghanista­n.

US Ambassador to the United Nations Nikki Haley told Prime Minister Narendra Modi on Wednesday it was important India cut Iranian oil use, but said the US would work to allow India to use an Iranian port as corridor to Afghanista­n.

“Sanctions are coming (on Iran) and we're going forward on that, and with India and the US building strong relationsh­ips we hoped that they would lessen their dependence on Iran,” Haley, a member of US President Donald Trump’s cabinet, told two reporters after her meeting with Modi in New Delhi.

The US said on Tuesday it had told countries to cut all imports of Iranian oil from November and was unlikely to offer any exemptions as the Trump administra­tion ramps up pressure on allies to cut off funding to Iran. India is one of the largest importers of Iran's oil. "There's a will, a political will, from both sides to figure out how to make this work," Haley said. "Prime Minister Modi very much understand­s where we are with Iran, he didn't question it, he didn't criticise it, he understood it and he also understand­s that (India's) relationsh­ip with the US is strong and important and needs to stay that way."

The US push to curb countries' imports of Iranian oil comes after Trump in May withdrew from a 2015 deal between Iran and six world powers aimed at stalling Tehran's nuclear capabiliti­es in return for the lifting of some sanctions. Trump ordered the reimpositi­on of US sanctions that were suspended under the accord. Haley said the implicatio­ns of Iran-related sanctions would be discussed when the foreign and defence ministers of India and the US meet shortly.

Japan and South Korea, also major buyers of Iranian oil, are in talks with the US government in a bid to avoid the adverse effects of sanctions.

Haley said she also discussed with Modi the Indian-backed Chabahar port complex in Iran, being developed as part of a new transporta­tion corridor for landlocked Afghanista­n and which could open the way for millions of dollars in trade and cut Afghanista­n's dependence on neighborin­g Pakistan. "We know the port has to happen and the US is going to work with India to do that," Haley said. "We know that they are being a great partner with us in Afghanista­n and really trying to assist the U.S. and trying to do more. The port's vital in trying to do that."

"We realize we are threading a needle when we do that," said Haley, describing a balancing act of ensuring Indian use of the port in Iran while Washington is at the same time trying to once again cut Tehran off from internatio­nal markets.

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