Turkey Says Will Keep Importing Iranian Oil

Turkey will not heed the US State Department’s call on allies to stop importing Iranian crude oil by Nov. 4, when the latest sanctions will kick in.

“The decisions taken by the United States on this issue are not binding for us. Of course, we will follow the United Nations on its decision. Other than this, we will only follow our own national interests,” Turkey’s Economy Minister Nihat Zeybekci said, Oil Price reported.

“We will pay attention so our friend Iran will not face any unfair actions,” he added.

The US State Department earlier this week called on all its allies to completely stop buying Iranian crude, and although many are trying to find a way around the sanctions, it is for now proving tricky and many buyers are winding down their purchases of Iranian crude.

At the same time, oil importers such as Japan, South Korea and India, as well as European countries have said they will continue to buy Iranian crude.

"The European Union is particularly concerned about the situation because there is only so much that the three European signatories to the Iran nuclear deal could do to prevent Tehran from exiting it, which might happen if it stops seeing benefits from it," Iran's President Hassan Rouhani said.

The nuclear deal, which Iran signed with the US, France, Germany, the UK, Russia, and China, ended the international sanctions that Iran was subjected to because of its nuclear program, and gave it access to international markets, especially oil markets.

India’s oil ministry has told local refiners to get ready for a drastic reduction or zero oil imports from Iran, industry sources told Reuters on Thursday, a sign that India—Tehran’s second-largest oil customer—is bowing to pressure from the US to reduce imports from Iran.

“India has asked refiners to be prepared for any eventuality, since the situation is still evolving. There could be drastic reduction or there could be no import at all,” one of the sources with knowledge of the matter told Reuters.

Some Indian refiners, Nayara Energy and Reliance Industries, have reportedly started to reduce Iranian oil purchases due to their exposure to foreign investors and to the US financial system.

India will not have problems replacing Iranian oil and could buy Basra Heavy Iraq, Saudi, or Kuwaiti oil instead, an Indian source told Reuters.