India imposes ban on US-sanctioned Iranian ships

• India has banned entry of US-sanctioned Iranian ships into its water.
• The move will adversely impact crude oil imports from the country’s 4^th largest crude oil exporter.

Background:

In July 2012, after EU imposed sanctions against Iran, India had permitted state oil refiners including Mangalore Refinery and Petrochemicals Ltd (MRPL) to import oil from Iran on CIF (cost, insurance and freight) basis, wherein, Tehran was responsible for arranging for ships and insurance. But the the govt revoked the permission after a few days. The U.S. imposed sanctions on the National Iranian Tanker Company and its 58 vessels. To get a waiver from the U.S. sanctions India slashed its crude oil imports from Iran. While India was later exempted from the sanctions for its import of crude oil from Iran, shipping is not included under it. Domestic ships can import crude oil only if state insurers led by General Insurance Corp (GIC) provide insurance cover for domestic to them.

Month: Current Affairs - July, 2012