India and Iran have put systems in place to continue their trade in crude oil, with India winning a temporary waiver from the United States after Washington re-imposed sanctions on the Persian Gulf nation over its disputed nuclear programme.
The sanctions inhibit global fleet owners and insurers from dealing with Iran crude shipments for fear of incurring the wrath of the US. Lack of ship and cargo insurance will hurt imports from Iran, India’s third-biggest supplier after Saudi Arabia and Iraq.
To bypass this hurdle, India’s Shipping Ministry has amended a key shipping rule mandated by the government for crude purchases by state-run oil refiners. Read more