What Happened: India and Iran will reportedly soon announce an agreement for India to buy Iranian crude oil through a rupee-based payment mechanism, Reuters reported Dec. 6.
Why It Matters: India is attempting to maintain a balancing act between growing its defense partnership with the United States and strengthening its relations with Iran. Tehran is India's third-largest supplier of oil and New Delhi relies on crude oil imports for 80 percent of its consumption.
Background: Prior to the arrangement, India was paying for Iranian crude through European banking channels. In exchange for a 180-day waiver, India will be allowed to import only 300,000 barrels per day (BPD) of Iranian oil, compared to an average of 560,000 bpd before U.S. sanctions were implemented.
Read More:
- The U.S. Supersizes Its Sanctions (Dec. 6, 2018)
- India and South Korea Win Waivers From Iranian Oil Sanctions, but the Pressure's Still On (Nov. 1, 2018)
- India Inches Closer to the U.S. (Sept. 6, 2018)
