US Ambassador designate defends India's policy on Iran

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With the lawmakers questioning India's decision to continue importing oil from Iran defying American sanctions, the US Ambassador designate to the country Nancy Powell has showed an understanding of its compulsions in this regard given the growing energy needs.

At her confirmation hearing on Tuesday, Powell assured that implementation of Iranian sanctions would be one of her top priorities when she is in New Delhi as the US Ambassador to India.

"If confirmed, I understand and appreciate that this is going to be a very important topic and one of those that I will be dealing with very seriously and very early in my tenure," Powell said while differing with the strong remarks made by Senator Robert Menendez that India seems to be rebuking the sanctions.

"Approaching it, I think, perhaps a little bit differently than you did, but to recognise that India shares with us a desire to see a non-nuclear state in Iran. They have supported us in the IAEA four times. We continue to have very important dialogue at the most senior levels of the US government, she said, adding that she intended to be a part of that dialogue.

The US official said that apart from making sure of the implications of legislation and the US sanctions on India, focus would also be on the actions taken by the later in this regard.

"Foreign Secretary (Ranjan) Matai, on Tuesday, in his public remarks, commented that there already appears to be a reduction in the percentage of oil that India receives from Iran out of its total imports. That would be a very good sign," she said.

"If countries like India are basically going to pay in gold or find other ways to circumvent the sanctions, then while I appreciate what you said about India sharing our goals, well, you could share our goals, but you could ultimately continue to facilitate the resources that are necessary for Iran to achieve its nuclear power," Senator Menendez said while referring to Powell's statement.

Menendez said that the Indian government, which is one of Iran's largest crude customers, seems to be rebuking the sanctions and looking for workarounds, including considering payments in gold and transactions that detour around the central bank of Iran which is helping its government to fuel their nuclear ambitions.

Meanwhile, Senator Richard Lugar, Ranking Member of the Senate Foreign Relations committee, wanted to know on the press reports indicating that India's Oil and Natural Gas Corporation, the ONGC, has come under pressure to finalise a service contract for natural gas production with Iran.

Lugar said that as the India and Iran have a long tradition of trade across energy and other fields, so it need to be significantly reduced as a part of US sanctions regime.