India studies new US decision against Iran oil waiver

New Delhi: India has seen the US announcement which says that five major countries including India will no longer be exempt from penalties if they continue to import oil from Iran, and is studying the implications of the decision, said informed sources on Monday.

The sources said that the government has seen the announcement made by the US Secretary of State Mike Pompeo that the United States will not extend any waivers to importers of Iranian oil from sanctions and there will be no grace period for them to comply.

They said that implications of the decision are being studied and a statement will be made at an appropriate time.

US President Donald Trump has decided that five major countries including India will no longer be exempt from penalties if they continue to import Iranian oil, the White House said on Monday.

It announced that sanction waivers for China, India, Japan, South Korea and Turkey would not be renewed when they expire on May 2. The decision is intended to deny Iran its principal source of revenue.

In November, the US reimposed sanctions on exports of Iranian oil after Trump withdrew from a 2015 nuclear accord between Iran and six world powers.

Washington, however, granted waiver to Iran’s eight main oil buyers from the sanctions that allowed them limited purchases for six months. These countries were India, China, Japan, South Korea, Taiwan, Turkey, Italy and Greece.

The sanctions have led to a sharp downturn in Iran’s economy, pushing the value of its currency to record lows, quadrupling its annual inflation rate and driving away foreign investors, which have triggered protests across the country.