India Seeks to Continue Oil Imports From Iran

India is discussing with European Union members to find a way to convince the US that its economic sanctions on Iran will have negative implications for the Indian economy.

With India seeking ways to maintain its bilateral ties with Iran in the face of US sanctions, a London-based international law firm said on Thursday that Iran’s major energy consumers like India and China have indicated they intend to find a way to go around the US sanctions and keep the Iran oil lines open, Hindustan Times reported.

“As the US continues to mount pressure on its allies to prescribe to unilateral sanctions on Iran, Iran’s major energy customers, including China and India, have indicated their defiance to the US’s request,” law firm Zaiwalla and Company Managing Partner Pavani Reddy said in a statement.

“India currently has a competitive agreement with Iran for oil supplies—the shipping costs from the Persian Gulf are minimal in comparison to the US, and Iran also offers a longer credit repayment period,” she added. Iran has become the third biggest oil supplier for India, which imports more than 80% of its energy needs.

 Reddy said these cost differences are lucrative in the long run.

“With countries, including China and India, unwilling to completely cut Iranian oil imports, and with the EU also refusing to endorse the withdrawal from Iran nuclear deal, the US finds itself in a compromising position to negotiate with Iran’s customers to reduce oil imports,” she said.