India, Iran discuss boosting energy ties, trade after 7-year oil import halt
India and Iran on Thursday discussed strengthening energy cooperation and bilateral trade during a meeting on the sidelines of a BRICS energy ministers' gathering in
India and Iran on Thursday discussed strengthening energy cooperation and bilateral trade during a meeting on the sidelines of a BRICS energy ministers' gathering in New Delhi. Iranian oil ministry news outlet Shana first reported the development after a meeting between the oil ministers of both countries. India's Minister of Petroleum and Natural Gas, Hardeep Singh Puri, met with Iran’s Oil Minister Mohsen Paknejad and discussed ways to enhance bilateral cooperation in the oil and gas sector. The Iranian oil minister met with Puri on the second day of his visit to India and stressed the significance of boosting cooperation between Tehran and New Delhi. Also Read | Trump claims Iran behind drone attacks on Indian ships India-Iran ties Historically, India has been a crucial buyer of Iranian crude oil, but suspended imports in 2019 after Washington reimposed sanctions on Iranian oil exports, Reuters reported. Since then, oil-sector cooperation between the two sides has declined significantly.
However, Tehran and New Delhi have continued holding discussions on wider energy collaboration and the use of their strategic infrastructure and trade capacities, including the Chabahar Port. The ministers reviewed opportunities to enhance cooperation in oil and gas and explored avenues to expand bilateral engagement in the energy sector. Earlier on Wednesday, Paknejad, who arrived in New Delhi to attend the BRICS meetings on energy cooperation, said that Tehran is ready to establish economic ties with India, ANI reported. He added, “As you know, we have had historical relations between Iran and India for a long time, for centuries, as you know. At the moment, I'm here to take part in this session as a BRICS Energy Minister for the members of BRICS. And I will see what we talk about in these sessions, bilateral sessions, and totally in the conference. And we are now ready for all the relations we can have in economic fields with India, especially in India.” Also Read | Iran admits progress at Chabahar Port slowed down due to US sanctions The development comes a week after Iran and the United States signed an interim deal, following which Washington issued a temporary license allowing export of Iranian energy products.
Here's how much of Iran's oil India imported before sanctions According to a PTI report, at peak, Iranian crude accounted for 11.5 per cent of India's total imports. However, after sanctions tightening in 2018, India's oil imports from Iran ceased in May 2019, with volumes replaced by Middle Eastern, US, and other grades. India used to buy 518,000 barrels per day of Iranian oil in 2018, which slowed to 268,000 bpd between January and May 2019 when the US granted waivers to a few buyers. There have been no imports since. India defends energy sovereignty Ahead of the meeting between Indian and Iranian oil ministers, the Ministry of External Affairs (MEA) on Tuesday defended India's energy sovereignty and said that New Delhi's pursuit of energy security for its 1.4 billion people remains motivated strictly by "national interest." MEA Spokesperson Randhir Jaiswal addressed a briefing and emphasised that the country's strategy involves diversifying its energy sources to ensure affordability.
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