The Indian government’s ill-advised statement last week that it will continue to purchase oil from Iran is a major setback for the U.S. attempt to isolate the Iranian government over the nuclear issue.
The New York Times reported recently that Indian authorities are actively aiding Indian firms to avoid current sanctions by advising them to pay for Iranian oil in Indian rupees. It may go even further by agreeing to barter deals with Iran – all to circumvent the sanctions regime carefully constructed by the U.S. and its friends and allies. According to the Times, India now has the dubious distinction of being the leading importer of Iranian oil.
This is bitterly disappointing news for those of us who have championed a close relationship with India. And, it represents a real setback in the attempt by the last three American Presidents to establish a close and strategic partnership with successive Indian governments.
The Indian government’s defense is that it relies on Iran for 12 percent of its oil imports and can’t afford to break those trade ties. But India has had years to adjust and make alternative arrangements. Ironically, the United States has had considerable success on the sanctions front in recent months. The EU has decided to implement an oil embargo on Iran, the U.S. is introducing Central Bank sanctions and even the East Asian countries, such as China, have imported less Iranian oil in recent months. That makes India’s recent pronouncements seem extremely out of step and out of touch with the new global determination to isolate and pressure Iran to negotiate in order to avoid a catastrophic war.
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