Iran import cut welcomes Hillary

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Half the purpose of US secretary of state Hillary Clinton’s visit may have been served even before she sets foot in New Delhi — Iran is no longer the second-largest supplier of oil to India.

Having resisted US pressure to uphold sanctions on the close friend, New Delhi has eventually ceded ground.

After Saudi Arabia, Iran was the second-largest source of oil for India. Not anymore. Iraq has replaced it and Iranian imports are down from 16.5 per cent during 2008-09 to around 10.4 per cent.

Officials accompanying Ms Clinton, who arrived in Kolkata shortly after noon on Sunday on a three-day visit to India, indicated among the main items on her agenda while in New Delhi would be seeking assurances to reduce dependence on oil imports from Iran.

“We really need to receive assurances that they are going to continue to make good progress and the trend lines are good,” they were quoted.

Following the US-led international sanctions, making payment for Iranian oil had become difficult for India as not many banks were willing to do business with the West Asian nation.

Also, New Delhi feared US sanctions by June-end if Washington felt it had not reduced Iran oil import significantly.

Ms Clinton arrives in New Delhi on Monday after meeting West Bengal CM Mamata Banerjee. She is expected to try and persuade Ms Banerjee, who has stalled multi-brand retail.

Ms Clinton will meet PM Manmohan Singh on Monday and may again raise the issue of reduction in Iran oil import.

Bilateral issues such as civil nuclear cooperation, regional security, particularly with reference to Afghanistan and Pakistan, defence cooperation and easing of trade restrictions are also on the agenda.