India refuses to ally with US on Iran sanctions | WPN World People News

India has vowed not to cut Iranian oil imports despite US and European sanctions to curb the Islamic republic's alleged military nuclear programme.

India, the world's fourth-largest oil consumer, will not take steps to cut petroleum imports from Iran, Finance Minister Pranab Mukherjee said during his visit to Chicago.

"Iran contributes substantially and it is not possible for India to make any decision to reduce the import from Iran drastically," Mukherjee told reporters at the end of the two-day visit.

After Saudi Arabia, Iran is the second biggest supplier of oil to India. Iran accounts for almost 12 per cent of India's oil import bills.

The US wants buyers in Asia, Iran's biggest oil market, to cut imports to put further pressure on Tehran to rein in its nuclear ambitions.

Washington says Iran is trying to make nuclear weapons. Tehran denies this, saying its nuclear programme is for peaceful energy usage.

New US sanctions passed December 31 penalizes any financial institutions dealing with Iran's central bank. This could make it difficult for India to pay Iran for oil imports. But New Delhi sounded unfazed.

"It is not possible for India to take any decision to reduce the imports from Iran drastically, because among the countries which can provide the requirement of the emerging economies, Iran is an important country amongst them," Mukherjee said.

The European Union banned oil imports from Iran earlier this month.

The US has also failed to get China to cut its oil imports from Iran.

Source: The Asia News.Net