Iran and oil

USA does not want India to buy oil from Iran. It is India’s right to buy anything from any country. USA threatens sanctions against any country that buys oil from Iran.
For long India has succumbed to US pressure. There was plan of Iran-Pakistan-India pipeline. India withdrew to please USA.
Oil trade is mostly in American dollars. USA will fine banks that deal with Iran and block them from SWIFT (Society for Worldwide Interbank Financial Telecommunication) System. Russia has developed SPFS (System for Transfer of Financial Messages) as an alternative to SWIFT. EU wants to establish an alternative to SWIFT.
Iran has received rupee payment for oil. At one time India imported 17% of oil from Iran. It has come down from that and recently it is said to be 5%.
USA says it helped India to get Masood Azhar declared as global terrorist. China has blocked India’s attempt against Masood Azhar for a long time. We do not why China relented, what compromises India made and what was USA’s role in getting China agree on Masood Azhar. Reports about how India achieved that are not reliable as officially nothing is said. USA talks of war on terrorism. It wants India to go against Iran because it sided with India in Masood Azhar case. So USA will not side with India against terrorism unless it gets something in return.
India should make rupee strong. Stronger the rupee the better. There will be no need of subsidies for oil and gas.
USA also does not want India to buy oil from Venezuela. It tried to topple Nicolas Maduro government and failed.
India will have to fight against terrorism on its own. USA is not India’s ally in fight against terrorism. Buying oil from any country is India’s prerogative. It is question of India’s sovereignty. India’s relationship with USA or any other country should be reciprocal. If USA is nasty to India, India should be nasty to USA. That happened in Devyani Khobragade case. Now it is election time in India. Government and Opposition are attacking each other and Iran oil issue is not talked about. Hope things will be better when elections are over and new government is formed.

Updated: May 8, 2019 — 11:54 am


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  1. Will the new government dare to challenge Uncle Sam?

  2. Time will tell. We do not know who will be in next government. If the Left Front is a significant partner in the next government it will likely challenge USA.

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