Relief for India? US could grant waivers for Iran oil imports

WASHINGTON: Dialling back the inflexible position it had taken before, the United States on Monday said it will consider waivers for countries such as India that buy Iranian crude when energyrelated sanctions are enforced in November.

Such waivers will be granted on a case-by-case basis and will depend on evidence of reduced purchases by those seeking waivers.

A similar condition was imposed in the past too when the US granted waivers for Iran-related sanctions.

Arguing that Washington is “not looking to grant licences and waivers broadly” as that will substantially reduce the pressure it intends to mount on Tehran to change its behaviour, Brian Hook, head of policy planning at the state department, told a news briefing on Iran-related sanctions that the US is “prepared to work with countries that are reducing their imports on a case-by-case basis”.

But he added, “As with our other sanctions we are not looking to grant waivers of licences.” Hook’s remarks on waivers came in response to a question about plans by India and Turkey to continue importing crude from Iran.

India is the second largest buyer of Iranian crude - China is the first - and it was alarmed by a senior US official’s remarks last week that countries which do not cut their imports from Iran to zero by November 4, when the energy-linked sanction are reimposed, will be subject to “secondary sanctions” and that there will be no waivers or exemptions.

Nikki Haley, the US envoy to the UN, said last week she had raised the issue of Iranian oil imports during a meeting with PM Narendra Modi and told him that the Trump administration hopes “they would lessen their dependence on Iran” as the US and India build a strong relationship. Like the rest of the world, India had expected the US to gradually bring back sanctions after President Donald Trump withdrew from the Iran nuclear deal on May 8, so that buyers had time and chances to scout around for other suppliers, as was done the last time.

India imported 705,000 barrels per day (bpd) of Iranian crude in May, and an average of 583,500 bpd over the first five months of 2018, according to Reuters.