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Swiss Think Tank Says India Can Do Without Iran Oil

Swiss Think Tank Says India Can Do Without Iran OilSwiss Think Tank Says India Can Do Without Iran Oil

India can probably do without importing Iranian crude oil, the chairman of a Switzerland-based think tank told Times of India on Wednesday, but warned that the trade wars and tariffs are more worrisome for India’s economy.
"India—the world’s third-largest oil importer and the second-biggest oil customer of Iran—is unlikely to see a long-term impact on its oil import bill from the US sanctions on Iran’s oil coming into force in less than two weeks," Frank-Jurgen Richter, chairman of independent think tank Horasis said, Oil Price reported.
India was expected to cut back on Iranian oil purchases, but it is unlikely to cut off completely the cheap Iranian oil that is suitable for its refineries.
"More worrying for India’s economy than the sanctions on Iran are the trade war and trade tariffs, although they are mostly aimed at China," Richter said.
 However, should trade wars lead to a global recession, India would be relatively isolated because its economy is not that integrated with the global economy as is China’s, he noted.
Recent reports have it that India is also discussing ditching the US dollar in its trading of oil with Russia, Venezuela, and Iran, instead settling the trade either in Indian rupees or under a barter agreement.
But the United States continues to insist that it expects Iranian oil buyers to bring their purchases down to zero.
Indian conglomerate Reliance Industries has already stopped importing crude oil from Iran to comply with US sanctions because of its large exposure to international markets and the US financial system.  
Earlier this month, Indian officials said they hoped India could secure a waiver from the United States, because it has significantly reduced purchases of Iranian oil.

 

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