Well the India-America friendship, or rather Trump- Modi friendship seems to help both at some or the other time. India is being granted a waiver from the sanctions imposed on Iran, and here’s why.

Total eight countries have got the waiver on the sanctions and India is one of them. The Trump administration announced that all the eight governments that have taken steps to decrease oil importation from Iran will be receiving waivers temporarily. As Mike Pompeo, Secretary of State said, these sanctions are fully “aimed at fundamentally altering the behavior of the Islamic Republic of Iran.” A list of 12 demands have been issued by him, that includes all the conditions Iran must meet to get the sanctions lifted and also include an end to its support for terrorism and military engagement in Syria and a permanent halt to nuclear and ballistic missile development. Now the question is what did India do to get the waiver? So, India agreed to lower the quantity of import and escrow payments from Iran.

India has shown the willingness to reduce the import from monthly 22.6 million tonnes (452,000 barrels per day) to 1.25 million tonnes or 15 million tonnes per year. Trump had already announced the re-imposition of sanctions on Iran in May, 2018. Since then, the sanctions have kicked in in August and will be implemented fully by November 5, 2018. It’s surprising that India has agreed to cut off the import, as Iran was the third largest supplier of oil to India in fiscal year 2018, the first and the second being Saidi Arabia and Iraq respectively. Actually, India has placed a large order of crude from Saudi to compensate with the import cut from Iraq.

A total of four million barrels are ordered. IOC and MRPL, however, have shown a wish to order 1.25 million tonnes crude from Iran this year. Soon after the announcement of re-imposition of sanctions, Trump posted something what looks like a movie poster image of himself somewhat similar to the TV series “Game of Thrones” with the tagline “Sanctions are Coming, November 5.”

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