Unwilling to capitulate entirely to US pressure to reduce its oil imports from Iran, India has once again affirmed that Iran is a “key country” for its energy needs. It has also said that where Iran is concerned, it needs to look at issues beyond energy trade and keep in mind the security and stability of the Gulf region.
India has bristled and resisted US pressure to reduce its oil imports from Iran over its nuclear programme. However, on Tuesday it maintained that the issue is “not a source of discord” between New Delhi and Washington.
Despite resisting US pressure to ease Iranian oil imports, India has been forced to ease imports following the US squeeze on financial transactions with Iran. Also, India affirmed on Tuesday that it would not like to jeopardise peace and stability in the Gulf region given its own stakes there.
Speaking shortly after Tuesday’s meeting with US secretary of state Hillary Clinton, external affairs minister S.M. Krishna said Iran remains “an important source of oil” for India. Mr Krishna, addressing a joint press conference with Ms Clinton, acknowledged that India has had to cut back on its oil imports from Iran. He added, “Ultimately, it reflects the decision that refineries make based on commercial, financial and technical considerations”.
Noting that “India has vital stakes in the Gulf region,” he said six million Indians live in this region and beyond. He added, “It is one of the critical destinations of our external trade — over 100 billion US dollars in exports, over 60 per cent of oil imports and a major source of remittances.”