NEW DELHI: India will seek US exemptions to buy Iranian oil and work towards setting up an alternative payment mechanism to protect its trade with the Islamic Republic in the wake of US sanctions against Tehran, according to officials familiar with the matter.
Indian policymakers had initially believed that the sanctions may not matter to India this time as much as they did last time round since it has been unilaterally imposed by the US, but are now increasingly of the view that Europe may not be able to save the Iranian nuclear deal America has abandoned.
Last week, an Indian delegation, comprising senior officials from the ministries of external affairs, finance and petroleum, returned from their visit to key European capitals with a strong feeling that Europe, despite strong words, may not be able to stand up to the US pressure, according to officials. This means the European banking channel used by Indian refiners to pay for Iranian oil could just get blocked.